As CFO of Linkoln Logs, you are considering the acquisition of Pit Pat Toys. You have collected the following information: Linkoln Logs Pit Pat Toys Next year's dividends per share $3.00 $0.40 Number of shares 1,000,000 600,000 Stock Price $80 $10 You estimate that investors currently expect a steady growth of about 4% in Pit Pat Toys' dividends. Under your management this growth rate would be increased to 6% per year, without any additional capital investment required. Assume that the market has not increased the price of Pit Pat Toys in response to the merger possibility. Also assume the dividend growth model holds in this market. a.) What is the dollar gain from the acquisition? b.) Linkoln Logs plans to acquire Pit Pat by offering one (new) share of Linkoln Logs for every five shares of Pit Pat. What is the premium paid for the acquisition? c.) What is the maximum number of shares Linkoln Logs can offer Pit Pat Toys without hurting Linkoln's shareholders assuming the increased growth described above? d.) What is the share exchange ratio for the deal described in (c)? As CFO of Linkoln Logs, you are considering the acquisition of Pit Pat Toys. You have collected the following information: Linkoln Logs Pit Pat Toys Next year's dividends per share $3.00 $0.40 Number of shares 1,000,000 600,000 Stock Price $80 $10 You estimate that investors currently expect a steady growth of about 4% in Pit Pat Toys' dividends. Under your management this growth rate would be increased to 6% per year, without any additional capital investment required. Assume that the market has not increased the price of Pit Pat Toys in response to the merger possibility. Also assume the dividend growth model holds in this market. a.) What is the dollar gain from the acquisition? b.) Linkoln Logs plans to acquire Pit Pat by offering one (new) share of Linkoln Logs for every five shares of Pit Pat. What is the premium paid for the acquisition? c.) What is the maximum number of shares Linkoln Logs can offer Pit Pat Toys without hurting Linkoln's shareholders assuming the increased growth described above? d.) What is the share exchange ratio for the deal described in (c)