Question: A Inc. is considering acquiring M Inc. M ' s current cash flows are about $ 1 0 million and are expected to grow at

A Inc. is considering acquiring M Inc. M's current cash flows
are about $10 million and are expected to grow at 10% for the first 3
years, 5% for the next 3 years and then 3% indefinitely. M's capital structure comprises of equity and debt. It has about 4.2 million equity shares outstanding and $48 million in debt. M's cost of capitalis 12%. At what price per share should A Inc acquire M Inc?
A Inc. is considering acquiring M Inc. M's current cash flows

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