Corporate Finance: **Kindly provide workings and clear answers.

Question 10:
Victoria Bhd is contemplating the acquisition of Pogo Ski Sticks, Inc. the values of the two companies as separate entities are RM20 million and RM10 million, respectively. Victoria Bhd estimates that by combining the two companies, it will reduce marketing and administrative costs by RM500,000 per year in perpetuity.
Victoria Bhd can either pay RM14 million cash for Pogo or offer Pogo a 50% holding in Victoria Berhad. The opportunity cost of capital is 10%.
(i) What is the gain from the merger?
(ii) What is the cost of the cash offer?
(iii) What is the cost of the stock alternative?
(iv) What is the NPV of the acquisition under the cash offer?
(v) What is the NPV under the stock offer?