Clive plc is considering the acquisition of Blessed plc. Clive plc has a current market value of $100,000,000. Blessed plc has a current market value of $50,000,000. If the acquisition occurs, expected economies of scale will result in savings of $2,500,000 per annum for the foreseeable future. The required rate of return on both companies and the proposed combination is 10%. The transaction costs will amount to $2,000,000. Calculate: () The present value of the gain from the merger. (3 marks) (ii) The value that would be created for Clive plc's shareholders if cash offer of Clive plc is considering the acquisition of Blessed plc. Clive plc has a current market value of $100,000,000. Blessed plc has a current market value of $50,000,000. If the acquisition occurs, expected economies of scale will result in savings of $2,500,000 per annum for the foreseeable future. The required rate of return on both companies and the proposed combination is 10%. The transaction costs will amount to $2,000,000. Calculate: () The present value of the gain from the merger. (3 marks) (ii) The value that would be created for Clive plc's shareholders if cash offer of