What is the maximum price per share firm

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Firm A is considering a merger/acqusition with Firm B. Based on the following data, what is the maximum price per share Firm A would pay to acquire Firm B in a tender offer?

Firm A:

Market value of debt: 1 million

Market value of equity: 6 million

Number of shares: 0.1 million

Estimated total firm value based on value-based management model: 7.2 million

Firm B:

Market value of debit: 4 million

Market value of equity: 6 million

Number of shares: 0.4

Estimated total firm value based on value-based management model: 12.8 million

Reference no: EM131863026

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