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Business, 19.12.2019 02:31 Kazya4

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 $8.3 million. the cash flows are expected to grow at 7 percent for the next five years before leveling off to 4 percent for the indefinite future. the cost of capital for schultz and arras is 11 percent and 9 percent, respectively. arras currently has 3 million shares of stock outstanding and $25 million in debt outstanding. what is the maximum price per share schultz should pay for arras?

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