B has 1 million shares priced at $2 each.A plans to acquire 50 per cent of shares in B.The change in net operating cash flows expected from the takeover is $500 000 p.a.The cost of capital for A's assets is 10 per cent and 12.5 per cent for B's assets.What is the maximum price per share A should offer B in order to take it over given the aforementioned information?

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The Answer of B has 1 million shares priced at $2 each.A plans to acquire 50 per cent of shares in B.The change in net operating cash flows expected from the takeover is $500 000 p.a.The cost of capital for A's assets is 10 per cent and 12.5 per cent for B's assets.What is the maximum price per share A should offer B in order to take it over given the aforementioned information?

B Has 1 Million Shares Priced at $2 Each