QUESTION 3 1. c EV MVA XEROX ($MM) 3,000 7,000 10,000 MVL 5,000 5,000 10,000 c EV MVA ACS (SMM) 1000 4,000 5,000 $3000 N= 75 shares P= $40/shares MVL 2,000 3 ooo 5,000 $5000 N=500 shares P $10/share The stand-alone MVBS of XEROX and of ACS are shown above. XEROX announces a merger deal paying ACS shareholders $50 per share in cash. Also XEROX assumes the $2000 debt of ACS. XEROX's CEO estimates the present value of net of tax synergies to be $2000. After the deal in announced ACS's stock price is $48.00 per share and Xerox's price is $9.00 per share. (10 points) After the announcement, what probability does the market assess for this deal to close? b. (5 points) What synergies does the market expect if this deal closes?