2. As treasurer of Company A, you are investigating the possible acquisition of Company B. You have the following basic data: You estimate that investors currently expect a steady growth of about 6% in B's earnings and dividends. Under new management this growth rate would be increased to 8% per year, without any additional capital investment required. a. What is the gain from the acquisition? b. What is the cost of the acquisition if A pays $25 in cash for each share of B? c. What is the cost of the acquisition if A offers one share of A for every three shares of B? d. How would the cost of cash offer and the share offer alter if expected growth rate of B were not changed by the merger? 3. Sometimes the stock price of a possible target company rises in anticipation of a merger bid. Explain how this complicaltes the bidder's evaluation of the merger gains