Question: answer both please for thumbs up Universal Drapers Inc is considering an acquisition of Mall Toys Co. (MTC), and estimates that acquiring MIC will result
Universal Drapers Inc is considering an acquisition of Mall Toys Co. (MTC), and estimates that acquiring MIC will result in incremental after-tax net cash flows in years 13 of $5 million, $7.5 million, and $9 million, respectively. After the first three years, the incremental cash flows contributed by the MrC acquisition are expected to grow at a constant rate of 5% per vear. Universal's current beta is 1.20 , but its post-merger beta is expected to be 1.56 . The risk-free rate is 3.5%, and the market. risk premium is 5.60%. Based on this information, complete the following table by selecting the appropriate values. (Note: Round your intermediate calculations to two deciral places.) Mall Toys Co. (MTC) has 4 million shares of common stock outstanding. What is the largest tender offer Universal Drapers Inci should make on each of Mall Toys Co. (MTC)'s shares? $32.73 $32.72
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