13. a) What is merger? How does a merger differ from other acquisition merger? b) What is goodwill? What is the difference between a purchase and pooling of interest? c) Penn Corp is analyzing the possible acquisition of Teller Company. Both firms have no debt. Penn believes the acquisition will increase its total after-tax annual cash flow by $2.4 million indefinitely. The current market value of teller is $58 million and that of Penn is $107 million. The appropriate discount rate for the incremental cash flows is 10%. Penn is trying to decide whether it should offer 40% of its stock or $73 million in cash to Tellers shareholders. a) What is the cost of each alternative? b) What is the NPV of each alternative? c) Which alternative should Penn choose