ABC has 1 milion shares outstanding, each of which has a price of $23. It has made a takeover offer of XYZ Corporation which has 1 million sthares outstanding, and a price per share of $2.34. Assume that the takeover will occur with certanty and all market participants know this. Furthermere, there are no synergies to merging the two fems. a. Assume ABC made a cash offer to purchase XYZ for 55.29 milicon. What happens to the price of ABC and XYZ on the announcement? What premium over the current market price does this ofler represent? b. Assume ABC makos a stock offer with an exchange ratio of 0.23. What happens to the price of ABC and XYZ this time? What premium over the current matket price does this offer represenf? c. At current market prices, both ofers are oflers to purchase XYZ for 35.29 million. Does that mean that your answers to parts (a) and (b) must be lidentical? Explain. 4. Askeme ABC made a cath oCer to purchase XYZ for 5529 millon. What happens to the price of ABC and XYZ on the announcement? The price of XYZ is on the arhouncenent is 1 per ahabe. (Round to the nearest cent)