ABC has 1 millon shares outatanding, each of which has a price of $17, It has made a takeover offer of XYZ Corporation which has 1 million shares outstanding, and a price per share of $2.55. a. Assume ABC made a cash offer to purchase XYZ for $3.23 milion. 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 makes a stock offer with an exchange ratio of 0.19 . What happens to the price of ABC and XYZ this time? What promium over the current market peice does this offer represent? c. At curent market prices, both oflers are offers to purchase XYZ for $3.23 million. Does that mean that your answers to parts (a) and (b) must be identical? Explain 4cos8 a. Aasume ABC made a cash offer to purchase XYZ for $3.23 million. Whet happens to the price of ABC and XYZ on the announcement? The price of 12 is on the announcement is 1 per shave. (Round to the nearest cont)