Fish Pies Inc. (FPI) has recently announced its intention to acquire Hamburgers R Us (HRU). FPI has identified potential annual gains from the acquisition of $250,000 per annum forever, with the first cash flow occurring exactly four years after the acquisition. If the acquisition were to proceed, FPI will however incur re-organization and integration costs of $300,000 per annum at the end of the first two years after the acquisition. Information about the two companies' relevant share prices and shares outstanding is provided below: Fish Pies Inc. Hamburgers R Us Share price $2.70 $5.50 Number of shares outstanding 15,000,000 1,200,000 FPI has also decided to make a cash bid for all outstanding shares of HRU and offers $6.40 per share to HRU shareholders. The appropriate opportunity cost of capital is 12% per annum. (a) Assuming the acquisition occurred immediately, calculate the gain from the acquisition. (b) Assuming the acquisition occurred immediately, calculate the total wealth impact for shareholders of Hamburgers R Us. Fish Pies Inc. (FPI) has recently announced its intention to acquire Hamburgers R Us (HRU). FPI has identified potential annual gains from the acquisition of $250,000 per annum forever, with the first cash flow occurring exactly four years after the acquisition. If the acquisition were to proceed, FPI will however incur re-organization and integration costs of $300,000 per annum at the end of the first two years after the acquisition. Information about the two companies' relevant share prices and shares outstanding is provided below: Fish Pies Inc. Hamburgers R Us Share price $2.70 $5.50 Number of shares outstanding 15,000,000 1,200,000 FPI has also decided to make a cash bid for all outstanding shares of HRU and offers $6.40 per share to HRU shareholders. The appropriate opportunity cost of capital is 12% per annum. (a) Assuming the acquisition occurred immediately, calculate the gain from the acquisition. (b) Assuming the acquisition occurred immediately, calculate the total wealth impact for shareholders of Hamburgers R Us