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Business, 28.08.2019 00:20 hockeystar0033

Dunbar hardware, a national hardware chain, is considering purchasing a smaller chain, eastern hardware. dunbar's analysts project that the merger will result in incremental free flows and interest tax savings with a combined present value of $72.52 million, and they have determined that the appropriate discount rate for valuing eastern is 16%. eastern has 4 million shares outstanding and no debt. eastern's current price is $16.25. what is the maximum price per share that dunbar should offer?

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