5) TechniComp Corp. is evaluating the possible acquisition of Netsoft, Inc. as of year-end 2020. TechniComps analysts have separately estimated the following information for Netsoft as a stand-alone entity, as well as the synergies the merger is expected to generate. Stand-alone Netsoft Data 2021 EBITDA $ 1,290 Million Interest Expense $ 215 Million Depreciation $ 400 Million Capital Expenditures plus Working Capital $ 695 Million Number of shares of equity outstanding 62 Million Cost of Equity of stand-alone Netsoft 13.05% Tax rate 21% Growth in FCFE beyond 2021 4% per year forever The firm typically finances 18% of its capital expenditures and working capital with new debt. Expected Synergies from the merger & Other Post-merger Data Incremental annual perpetual FCFE from synergies $ 90 Million Appropriate discount rate for the synergy cash flows 8.95% Post-merger tax rate 21% a) Estimate the per share stock price of stand-alone Netsoft as of year-end 2020. b) As of year-end 2020, what is the merger value of Netsoft to TechniComp? c) Should TechniComp offer a bid price of $85 per share for each share of Netsoft stock? Why or why not? Briefly explain.