Firm A is considering a merger/acquisition with Firm B. Based on the following data, what is the maximum price per share Firm A would pay to acquire Firm B in a tender offer?

Firm A:

Market value of debt: $1 million

Market value of equity: $6 million

Number of shares: 0.1 million

Estimated total firm value based on value-based management model if the merger takes place: 7.2 million

Firm B:

Market value of debt: $4 million

Market value of equity: $6 million

Number of shares: 0.4 million

Estimated total firm value based on value-based management model if the merger takes place: 12.8 million

a. $20.9

b. $19.3

c. $21.6*

d. $22.5

e. $18.5