b) Paper Bark Limited announced a bid to take over Coal Minor Pty Limited. Paper Bark Pty Limited has 3 million shares outstanding, selling at $15 per share. Coal Minor Pty Limited has 2 million shares outstanding, selling at $7.50 per share. Paper Bark Limited estimated the potential economic gain form the merger to be $5,000,000. i. If Coal Minor Pty Ltd could be acquired for $9 per share, what is the NPV of the Merger to Paper Bark Limited? ii. What will Paper Bark Limited shares sell for when the market learns that it plans to acquire Coal Minor Pty Ltd for $9 per share? What will Coal Minor Pty Ltd shares sell for? What are the percentage gains to the shareholders of each firm? iii. If instead of a cash payment Paper Bark Limited acquired Coal Minor Pty Ltd through a share exchange what would be percentage gains if: for each share in the Coal Minor Pty Ltd shareholders receive 0.6 of one share in Paper Bark Limited. What will be the price per share of the merged firm? iv. What is the NPV of the merger to Paper Bark Limited when it uses an exchange of shares? If your answer differs explain why this is so.