What is the maximum price per share nick fury should pay

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Question 1: Nick Fury Industries is considering the purchase of SLEE Enterprises. SLEE is currently a supplier for Nick Fury. The current cash flow from assets for SLEE is $6.1 million. The cash flows are expected to grow at 10 percent per year for the next five years before levelling off to 3 percent for the indefinite future. The cost of capital for Nick Fury and SLEE Enterprises are 10 percent and 8 percent, respectively. SLEE currently has 2 million shares of stock outstanding and $20 million in debt outstanding. What is the maximum price per share Nick Fury should pay for SLEE Enterprises?

Reference no: EM132653263

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