2. Sherwin-Williams eventually acquired Valspar for $113 per share in a cash merger. Before the initial announcement. Valspar stock was trading for $75 and there were 82 million shares outstanding. In the case study, several reasons were provided by Sherwin-Williams to justify this $3 billion premium. [A] What do you believe was the most compelling reason they provided? Explain why you find it compelling and exactly how it could be quantified in a DCF valuation model and a relative multiple valuation. [A] Did Sherwin-Williams state that they expected the deal to increase their market power such that they could raise prices? Provide a brief explanation. [C] Briefly explain one advantage and one disadvantage of using a cash merger as opposed to an acquisition of stock or assets to complete this deal. [D] The case mentionec that before the deal could close, Sherwin-Willams had to wait for The case mentionec that before the deal couid ciose, Sherwin-wiliams had to waic for with. [E] Why was the deal with Sherwin-Williams preferred as an acquirer by Valspar over a deal with a similar-size competitor