2. Before any announcement, AAA traded at $120 per share, had 500 million shares outstanding, $6000 million in cash, and $7500 million in debt. TTT traded at $50 pe share, had 200 million shares outstanding, $0 in cash, and $900 million in debt. AAA announced that it made an offer to buy TTT for $64 per share in cash. AAA's share price was $125 per share after the announcement. a. If the deal is expected to close with a 100% probability, show what the market value balance sheet would be for NEWCO (AAA) ? (10 points) b. Based on the AAA's closing price of $125 per share, what is the market's expectation of the present value of synergies (which includes any value from improved efficiencies from the merger)? (5 points) C. What is the NPV per AAA share from the merger based on AAA's price of $125 per share after announcement (10 points) 2. Before any announcement, AAA traded at $120 per share, had 500 million shares outstanding, $6000 million in cash, and $7500 million in debt. TTT traded at $50 pe share, had 200 million shares outstanding, $0 in cash, and $900 million in debt. AAA announced that it made an offer to buy TTT for $64 per share in cash. AAA's share price was $125 per share after the announcement. a. If the deal is expected to close with a 100% probability, show what the market value balance sheet would be for NEWCO (AAA) ? (10 points) b. Based on the AAA's closing price of $125 per share, what is the market's expectation of the present value of synergies (which includes any value from improved efficiencies from the merger)? (5 points) C. What is the NPV per AAA share from the merger based on AAA's price of $125 per share after announcement (10 points)