I am doing a project on AT&T and Time Warner merger. I need the following questions answered about the merger:

$8.$ Comment on the following suggestion of playing the $$relative P$/$E game$$ and $$Bootstrapping$.$ For your calculation assumptions, suppose that acquirer$$s shareholders have agreed to an exchange ratio of $1$ share of acquirer for every $2$ shares of target com. Also, assume that the combined net income of the two firms is the sum of their net incomes prior to the completion of the deal.

$9.$ Merger Valuation:

$$ What Does Enterprise Value $-$ EV Mean?

A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is calculated as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents.Think of enterprise value as the theoretical takeover price. In the event of a buyout, an acquirer would have to take on the company's debt, but would pocket its cash. EV differs significantly from simple market capitalization in several ways, and many consider it to be a more accurate representation of a firm's value. The value of a firm's debt, for example, would need to be paid by the buyer when taking over a company, thus EV provides a much more accurate takeover valuation because it includes debt in its value calculation.

$$ Please conduct further research$/$study on your own on the EV model$$s basics and applications.

$$ Using the EV method of valuation calculate the maximum offer price that acquirer would be justified in making for the target firm.