Mistral Software is considering a merger with Amsted Technologies. Mistral has $1\mathrm{.}2$ 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?

Synergy $=$ $

b$.$ Assuming that synergy is estimated at $$5\mathrm{.}2$ million and that $$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?

Annual synergies for years $210$: $

c$.$ Based on the $$50$ million merged firm value, what is the maximum Mistral could pay for Amsted$$s shares in cash?

Price per share $=$ $

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?

$($i$)$ Synergy going to Amsted shareholders $=$ $

Synergy going to Mistral shareholders $=$ $

$($ii$)$ Synergy going to Amsted shareholders $=$ $

Synergy going to Mistral shareholders $=$ $

$($iii$)$ Synergy going to Amsted shareholders $=$ $

Synergy going to Mistral shareholders $=$ $$($

$)$