Global Tours is analyzing the possible acquisition of Eastern Vacations. Due to the improved efficiency, Global Tours estimates that the combined firm could save $600,000 of annual after tax cash flows for the indefinite future. An investment bank estimates that Global Tours and Eastern Vacations are worth $30m and $15m respectively. Global Tours uses 15% opportunity cost of capital to discount its incremental cash flows. a.What is the synergy from the merger? b.If Global Tours offers $16m cash for Eastern Vacations, what is the premium (cost) of the merger? What is the NPV of the merger? c.If Global Tours offers 35% of the combined firm to owners of Eastern Vacations, what is the premium (cost) of the merger? What is the NPV of the merger? (Note:the synergy gains are still a part of the combined firm, and the price needs to reflect that.) Kindly if you could include any formulas it would be appreciated