What is maximum price per share that company a should offer

Reference no: EM13266982

Company A is interested in acquiring Company B. Estimated present value of Company B is $1 billion. Company B has 50 million shares of stock outstanding and no debt. Company B's book value is $22.50. What is the maximum price per share that Company A should offer?

$16.25
$22.50
$20.00
$25.25
none of the above

Reference no: EM13266982

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