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2. 2 Use the following information to answer problems Za through Ze Consider two all-equity financed firms, A and 3 Number of shares Price per

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2. 2 Use the following information to answer problems Za through Ze Consider two all-equity financed firms, A and 3 Number of shares Price per share Firma 1,000,000 530 Firm 500,000 523 Firm A estimates that the value of synergy from acquiring Firm B is 55.000,000. FirmA is considering acquiring Firm B by cither a) purchasing its shares for a canh offer of $29.50 per B share, by offering it 30% stock, or c) offering shares of stock in exchange for shares of Fim B What is the cost of the cash acquisition? 6 What is the cost of the 30% stock acquisition! What is the NPV of the cash acquisition? d. What is the NPV of the 30% stock acquisition If Firm & offers 450,000 shares of stock in exchange for 500,000 shares of Fim B, what will the price be after the acquisition e

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