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(c). Consider a merger between two all-equity firms, P and Q. The data for the two firms before merger are provided below The merger would

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(c). Consider a merger between two all-equity firms, P and Q. The data for the two firms before merger are provided below The merger would bring an additional value of Tshs. 4,000,000/=, and shareholders of firm Q are willing to sell the firm at Tshs. 6,000,000/=, payable in cash or stock. Required: (i). Calculate the net economic advantage to firm P and Q if P makes a Tshs. 6,000,000/= cash offer. (3 Marks) (ii).Suppose that P offers 60000 of its shares in exchange of 80000 shares of firm Q. Is this the same as the previous cash offer? ( 3 Marks) Scanned by CamScann (iii). How many shares does P have to offer so that the firm Q shareholders receive only Tshs.6,000,000/= of firm P's stock? (2 Marks) (iv). What is the post-merger price per share assuming the condition under (i) above? (2 Marks) (v). What is the minimum price that shareholders of firm Q will accept? (1.5 Marks)

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