You run a profitable conglomerate thinking about getting into the new business by acquiring the firm X.Current info for you, X and their similar comp is listed below.You estimate that, once you own X, it could immediately capture 3% market share of $10 billion.You also could enhance its other sales by 10%. You were planning on getting into the business yourself that would have increased your sales 15% -- instead now your sales will only increase 4% through synergies. These figures will be flat for the next five years then you expect long term growth from there at 5% per year forever on all line items. Margins will be such that COGS will be 60% of all sales.The acquired business will require an initial CAPX of $100 million, half of which will be expensed and the other half straight-line depreciated over the five years. The firm currently carries Depreciation of $15 million a year. At the end of year 5, maintenance CAPX needs to be spent to match that depreciation of $15 million. Operating expenses will be $10 million each year in addition to these depreciation figures.Net Working capital is always 5% of sales.There is an additional synergy: You could sell property that was housing a plant that is on your books for $100 million for a price of $75 million. Current overhead for X is $10 million a year and you plan on increasing this overhead by your firm's allocation rate of 10% of your firm's overhead of $40 million. Your figures are flat for the five year horizon and then free cash flows are expected to grow at the rate previously mentioned above.

Note:The corporate tax rate is 20%.Assume that all cash flows are year-end except for the up-front investment.You will finance the project appropriately with 20% A debt. Assume beta of debt = 0 and a market risk premium of 6.

You also have the following financial data pertaining to the market and to your publicly-traded competitors:

Treasury

SecurityRate

3-month T-bill 3%

5-Year T-bond 4%

30-year T-bond5%

A debt7.5%

Your Firm X Y

Stock Price$50 $40$20

Total Book Capitalization$800 Million$500 Million$500 Million

Leverage Ratio (Book)20%20%10%

Shares Outstanding 22 Million25 Million40 Million

Cash$12 Million$20 Million$10 Million

Beta (from YahooFinance)1.0 0.90.8

Total Sales$500 Million$250 Million $200 Million

New Sales $0 Million$200 Million$180 Million

What is the breakeven bid per share for you to acquire X? Please use DCF and input all data into table. Mention all formulas.