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Fly-By-Night Couriers is analyzing the possible acquisition of Flash in the Pan Restaurants Neither firm has debt. The forecasts of Fly. By Night show that

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Fly-By-Night Couriers is analyzing the possible acquisition of Flash in the Pan Restaurants Neither firm has debt. The forecasts of Fly. By Night show that the purchase would increase its annual aftertax cash flow by $380,000 indefinitely. The current market value of Flash-in-the-Pan is $10 million. The current market value of Fly-By-Night is $24 million. The appropriate discount rate for the Incremental cash flows is 10 percent Fly-By-Night is trying to decide whether it should offer 35 percent of its stock or $13 million in cash to Flash-in-the-Pon, a. What is the synergy from the merger? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) Synergy value b. What is the value of Flash-in-the-Pan to Fly-By-Night? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) Value c. What is the cost to Fly-By-Night of each alternative? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars. e... 1.234,567.) Cost of cash Cost of stock $ $ Synergy value b. What is the value of Flash-in-the-Pan to Fly-By-Night? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) Value c. What is the cost to Fly By Night of each alternative? (Do not round Intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) Cost of cash Cost of stock d. What is the NPV to Fly-By-Night of each alternative? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g., 1.234,567.) NPV of cash MPV of stock $ $

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