Mistral	Amsted
Shares (In millions)	1.2	0.8
Price per Share	$22	$23
Mkt Value (In millions)	$26.40	$18.40	(Shares * Price per Share)

WACC	10%
Estimated Value of Combined Firms (In Millions)	$50.00

Question (b) is what I can't seem to figure out, however you can go through each of them if you'd like. When answering, I'd appreciated it if you indicated your steps, or even including a snapshot of your Excel work. Thank you!

23-5. Synergy Mistral Software is considering a merger with Amsted Technologies. Mistral has 1.2 million shares outstanding with a value of $22, while Amsted has 800,000 shares outstanding with a $23 value. The merged company's WACC will be 10%. a. If Mistral believes the combined firm will have a market value of $50 million, what value of synergy is anticipated? Answer + $5,200,000 b. Assuming that synergy is estimated at $5.2 million and that $2 million of it is from cost savings expected in Year 1 due to the elimination of duplicate services, what must the remaining annual synergies be for the next 9 years to achieve the total expected synergies? Answer $645,900 c. Based on the $50 million merged firm value, what is the maximum Mistral could pay for Amsted's shares in cash? Answer $23,600,000 d. How much synergy will shareholders of Mistral and Amsted receive if a cash offering is made by Mistral to Amsted for (i) $23, (ii) $25, and (iii) $30 per share? Answer At $23: Mistral: $5.2 million, Amsted: $0; At $25: Mistral $3.6 million, Amsted $1.6 million; At $30: Mistral -$0.4 million Amsted $5.6 million