HIJ is considering the acquisition of the ABC. HIJ has 111 million shares outstanding and the stock price is $3.03. ABC has a market capitalization of $395 million and has 50 million shares outstanding. The combined entity will be worth $1,047 million.

1. If HIJ issues 99 million new shares to acquire ABC, what is the NPV of the acquisition to HIJ?
2. What is the premium (in %) received by ABCs shareholder in Part A?
3. If the synergy will be equally shared by the two groups of shareholders, what is the exchange ratio?
4. What is the maximum number of shares HIJ would issue to acquire ABC?