Alpha Corp Is Thinking About Acquiring Omega Inc

question 163

Essay

Alpha Corp is thinking about acquiring Omega Inc. Omega generated cash of $50M last year and is expected to grow at 5% indefinitely. Alpha expects synergies of at least $15M per year after the merger which will also grow at 5%. Omega has 20M shares of common stock outstanding on which stockholders earn a return of about 15%. What is the maximum price per share Alpha should offer for Omega?

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Participation in activities aimed at influencing public policy and government decisions, including voting, campaigning, and lobbying.

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