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As financial manager of Corton Inc, you are investigating a possible acquisition of Denham. You have the basic data given in the following table 14

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As financial manager of Corton Inc, you are investigating a possible acquisition of Denham. You have the basic data given in the following table 14 Torecast earnings per hace Teresat divided per where Shamber of share rock price Corton 7.40 4.44 2,200,000 90 Denhan 1.50 $ 0 1,000,000 20 023031 You estimate that investors expect a steady growth of about 6% in Denham's earnings and dividends. Under new management, this growth rate would change to 8.00% per year without the need for additional capital Required: a. What is the gain from the acquisition? b. What is the cost of the acquisition of Corton pays $25 in cash for each share of Denham? c. What is the cost of the acquisition if Corton offers one share of Corton for every three shares of Denham? d. How would the cost of the cash offer change of the expected growth rate of Corton was not changed by the merger? e. How would the cost of the share offer change of the expected growth rate was not changed by the merger? For all requirements, do not round Intermediate calculations. Enter your answers in millons rounded to 2 decimal places) 2 lain Cosi Cost Cash offer mon mon

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