Consider the following pre-merger information about KNM Bhd. and Jetson Bhd.: Shares outstanding Price per share KNM Bhd. 75,000,000 RM6.90 Jetson Bhd. 50,000,000 RM3.20 KNM Bhd. is considering acquiring Jetson Bhd, as part of the strategy to increase the market share of its core business. KNM Bhd. is evaluating two possible options either to pay RM3.60 in cash for every share of Jetson Bhd. or to offer one of its shares in exchange for 2 shares of Jetson Bhd Both firms are 100% equity-financed. KNM Bhd. estimates that the incremental benefit from this exercise to be worth RM27,500,000 4V Required: a. What is the value of Jetson Bhd. to KNM Bhd.? (2 marks) b. Which alternative option should KNM Bhd. choose and what is the possible drawback of the option chose? (12 marks) c. Describe two possible defensive tactics that Jetson Bhd management could employed to resist this takeover. (6 marks) (Total: 20 Marks)