Company A: Has 10 million shares, Share price was $5 on 30th September and is now $6 on 1st October

Company B: Has 20 million shares, Share price was $8 on 30th September and is now $8.3 on 1st October

Company B wants to take over company A. Expected synergy gains is $30 million,

A) Briefly explain why it is better to use the data from 30th September instead of 1st October

b) If the gains from the transaction were to be divided equally between the two firms, what cash price per share would Company B have to offer Company A shareholders?

C). At what cash offer price per share would all of the gains from the transaction be captured by Company A shareholders?

D) Assuming that the gains from the transaction would be divided equally between the two firms, how many shares in Company B would need to be offered in return for each share in Company A?