M&A Switter Ltd. has attracted a lot of attention in the market because of its high potential. The company has 10,000 shares outstanding that are currently trading at $20. Both FB Inc and WT Inc have shown interest in the acquisition of Switter. FB has a market value of $1 million and 100,000 shares outstanding, while WT has 600,000 shares trading at $15. In order to acquire Switter, FB has offered to pay to Switters shareholders $600,000 cash, while WT has offered to issue 40,000 new shares as a payment. It is expected that (present value) synergies from the merger with Switter would be $200,000 for both FB and WT. a) What offer should Switter's shareholders accept? b) Assuming present value of synergies from the merger with Switter would be $300,000 for both FB and WT, what offer should Switter's shareholders accept?