BigCo is buying LittleCo. Before the merger, BigCo had a yearly EBIT of $3M and a cost of equity of 12%. Before the merger, LittleCo had a yearly EBIT of $1M and a cost of equity of 17%. After the merger, the combined firm will have an EBIT of $6M. The tax rate is 35%, and the merger will require BigCo to increase their net working capital by $500,000. BigCo currently has 2M shares outstanding, and LittleCo currently has 700,000 shares outstanding. List two conclusions about the inner workings of these companies you could reasonably draw from the fact that BigCo is mostly paying in cash.