Pharmaceuticals is considering the purchase of Manufacturing. Pharmaceuticals is currentlya
supplier for Manufacturing and the acquisition would allow Pharmaceuticals to bettercontrol its
materialsupply. The current cash flow from assets for Manufacturing is $7.9 million.The cash flows are expected
to grow at 8 percentfor the next five years before levelingoff to 5 percent for the indefinite future. The cost of capital for Pharmaceuticals and Manufacturing is 12 percent and10 percent
respectively. Manufacturing currently has 3 millionshares of stock outstanding and $25 million in debt
outstanding. What is the maximum price per share Pharmaceuticals should pay for Manufacturing?