Hill, Inc.. plans to merge with Ravine Corp. Currently, the market value of Hill is 8 million euro and the market value of Ravine is I million euro if the companies are valued separately. After t merger, the company will enjoy economies of scale of 50 000 euro per year. which will last for 10 years, and then 20'000 euro per year forever. Hill will buy Ravine at a 20% premium in cash The cost of capital for both companies is 10% (a) What are the cost, gain and NPV of the merger? (b) Ravine Corp. has 250'000 shares outstanding. What will be the price per share of Ravine Corp. right after the merger is announcddiht: the cost of a merger is the gain realized by the shareholders of the acquired company (c) Hill, Inc. has 1 million shares outstanding. Instead of paying cash, it makes a stock offer. What share of the joint company should Hill propose to Ravine to pay the same premium on Ravine as in (a)? How many new shares should be issued? Compute the share price of the joint company