For the sake of this question, assume ELS trades at a premium to NAV of 20% and that NAV is $5B. Suppose ELS is looking to acquire a portfolio of properties similar to the one it has. Suppose further that the target portfolio's market-value is estimated at $1B. Finally, suppose that even if it issues new equity to finance the acquisition, ELS will continue to trade at a premium to NAV of 20%. Once the portfolio of properties is acquired (using equity), what should be the total market equity? Remembering that $1B of the new total (post-acquisition) market equity would come from new investors, what should be the stock price increase upon announcement of the deal (assuming the deal is sure to go through)? After acquisition the total market equity should be $6B. The stock price increase after the announcement of the deal should be zero After acquisition the total market equity should be $7.2B. The stock price increase after the announcement of the deal should be 20% After acquisition the total market equity should be $6B. The stock price increase after the announcement of the deal should be 20% After acquisition the total market equity should be $7.2B. The stock price increase after the announcement of the deal should be 3.33% After acquisition the total market equity should be $7B. The stock price increase after the announcement of the deal should be zero