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