Not excel, hand writing is needed, thank you very much

Cfood Co. is considering acquisition of Tfood Co. Some financial information on the two companies is given below (in $ million): Cfood Co. Tfood Co. Price per share 52 # of shares 10 Market value 520 13 2.5 32.5 If Cfood acquires Tfood, the operating cost (after-tax) can be reduced by $3m, and sales (after- tax) can be increased by $3m (the synergies) per year in perpetuity. The cost of capital is 18%. Cfood is considering two alternatives for the acquistion: 1. buying all the shares of Tfood at $15.6 per share. 2. issuing 1 shares for every 3 shares of Trood Workout on this merger deal and answer the following questions. 1. What is the economic gain from the merger? [2 marks] ii. What will be the NPV of merger under cash offer? [5 marks] ili. What will be the market value of merged company (Cfood after the acquition of Tfood) under the cash offer? [2 marks] iv. What is the cost of merger under stock offering? Also compute the merger's NPV for Cfood's original shareholders. [3+2 marks] v. What will be market value of Tfood after acquisition of Trood using stock financing? [2 marks]