b. Consider the following pre-merger information about Ali Baba Berhad and Kassim Baba Berhad: Ali Baba Kassim Baba Berhad Berhad Shares outstanding 300,000 150,000 Price per share RM13.75 RM6.00 Ali Baba Berhad is considering acquiring Kassim Baba Berhad as part of the firm's competitive strategy. Ali Baba Berhad is evaluating two possible options either to pay RM5.25 in cash for every share of Kassim Baba Berhad or to offer 40% of its stock. Both firms are 100% equity-financed. Ali Baba Berhad estimates that the incremental benefits from this exercise to be worth RM450,000. b. Consider the following pre-merger information about Ali Baba Berhad and Kassim Baba Berhad: Ali Baba Kassim Baba Berhad Berhad Shares outstanding 300,000 150,000 Price per share RM13.75 RM6.00 Ali Baba Berhad is considering acquiring Kassim Baba Berhad as part of the firm's competitive strategy. Ali Baba Berhad is evaluating two possible options either to pay RM5.25 in cash for every share of Kassim Baba Berhad or to offer 40% of its stock. Both firms are 100% equity-financed. Ali Baba Berhad estimates that the incremental benefits from this exercise to be worth RM450,000