What is the maximum price per share that Mondo should offer

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Question - The equity owners of Mondo Cult Inc. are considering purchasing Pulpless Inc, a small online bookstore. Mondo's analysts believe that the merger will result in incremental free flows and tax savings with a combined net present value of $390 million. Pulpless has 1 million shares outstanding and zero debt. Pulpless's current stock price is $5.00. What is the maximum price per share that Mondo should offer?

Reference no: EM132600656

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