What is the maximum price per share

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Reference no: EM131600381

Transco is considering acquiring Tenco. Tenco's current stock price is $23. What is the maximum price per share that Transco should offer based on the following data for Tenco: PV of future cash flows $200 million, 20 million outstanding shares, no debt, and discount rate of 12%?

$10.00

$7.07

$8.70

$8.13

None of the above

Reference no: EM131600381

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