Bright Star Couriers is analyzing the possible acquisition of Mama Restaurants. Neither firm has debt. The forecasts of Bright Star show that the purchase would increase its annual after-tax cash flow by $600,000 indefinitely. The current market value of Mama is $20 million. The current market value of Bright Star is $35 million. The appropriate discount rate for the incremental cash flows is 8%. a. What is the synergy from the merger? b. What is the value of Mama to Bright Star? Bright Star is trying to decide whether it should offer 40% of its stock or $23 million in cash to Mama. c. What is the cost to Bright Star of each alternative? d. What is the NPV to Bright Star of each alternative? e. Which alternative should Bright Star use