III.Calculation Questions $(19-22,10$ Points Each$)$

$19.(10$ Points$)$ Schultz Industries is considering the purchase of Arras Manufacturing. Arras is currently a supplier for Schultz, and the acquisition would allow Schultz to better control its material supply. The current cash flow from assets for Arras is $$7\mathrm{.}3$ million. Cash flows are projected to grow at $9$ percent annually for the next five years and then level off to a stable $4$ percent annual growth rate indefinitely. Shultz has a cost of capital of $12$ percent, while Arras's is $10$ percent.. Arras currently has $1\mathrm{.}9$ million shares of stock outstanding and $$30$ million in debt outstanding.

a$.$ What is the value of Arras Manufacturing? $(6$ Points$)$

b$.$ What is the maximum price per share Schulte should pay for Arras? $(4$ Points$)$