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answer for i,ii and iii pls Hulu Berhad (Hulu) is analysing the possible acquisition of Hilir Berhad (Hilir). Both firms have no debt. Hulu believes

answer for i,ii and iii pls
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Hulu Berhad (Hulu) is analysing the possible acquisition of Hilir Berhad (Hilir). Both firms have no debt. Hulu believes the acquisition will increase its total after-tax annual cash flows by RM2.4 million indefinitely. The current market value of Hilir is RM58 million, and that of Hulu is RM107 million. The appropriate discount rate for the incremental cash flows is 10%. Hulu is trying to decide whether it should offer 40% of its stock or RM73 million in cash to Hilir's shareholders. From the above information you are required to answer the following questions. i. Find out the cost of each alternative. (4 Marks) ii. From your answer in part (i), determine the Net Present Value (NPV) of each alternative. (4 Marks) iii. Based on NPV in part (ii), which alternative should Hulu choose? Explain your answer. (4 Marks) (Total: 20 Marks)

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