BC has 1 million shares outstanding, each of which has a price of $15. It has made a takeover offer of XYZ Corporation which has 1 million shares outstanding, and a price per share of $2.68. Assume that the akeover will occur with certainty and all market participants know this. Furthermore, there are no synergies to merging the two firms. . Assume ABC made a cash offer to purchase XYZ for $2.85 million. What happens to the price of ABC and XYZ on the announcement? What premium over the current market price does this offer represent? Assume ABC makes a stock offer with an exchange ratio of 0.19. What happens to the price of ABC and XYZ this time? What premium over the current market price does this offer represent? . At current market prices, both offers are offers to purchase XYZ for $2.85 million. Does that mean that your answers to parts (a) and (b) must be identical? Explain