If Raider Ltd, the acquirer, has 2 million shares with a market value of $4.00 each and Sucker Ltd, the target, has 1 million shares with a market value of $1.50 each, what is the net cost of takeover if Raider Ltd offers two of its own shares for every one share of Sucker Ltd? [Hint: use the formula, Net cost = b VAT - VT ]

$3,250,000

$3,625,000

$4,500,000

$2,450,000