CDF Inc. Is contemplating the acquisition of Fogo company. The values of the two companies as separate entities are $20 million and $10 million, respectively. CDF Estimates that by combining the two companies, will reduce marketing and administrative costs by $500,000 per year in perpetuity. CDF can either pay $14 million cash for Pogo or offer Pogo a 55% holding CDF. If the opportunity cost of capital is 10%. -What is the gain from merger? -What is the cost of the cash offer? -What is the cost of the sock alternative? -What is the NPV of the acquisition under the cash offer? -What is the NPV under the stock offer?