number of shares not provided

Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B has estimated that the value of the synergistic benefits from acquiring Firm Tis $9,500. a. If Firm Tis willing to be acquired for $30 per share in cash, what is the NPV of the merger? b. What will the price per share of the merged firm be assuming the conditions in (a)? c. In part (a), what is the merger premium? d. Suppose Firm Tis agreeable to a merger by an exchange of stock. If B offers four of its shares for every five of T's shares, what will the price per share of the merged firm be? e. What is the NPV of the merger assuming the condition in (d)? f. Are the shareholders of Firm T better off with the cash offer or the stock offer? 9. At what exchange ratio of B shares to T shares would the shareholders in T be indifferent between the two offers? (Show your answers and workings in the space provided. 25% penalty for submitting answers by email attachment within a minute of completing the section. 50% penalty for submitting answers by email attachment after a minute of completing the section B but before 2 minutes of completing the section, zero marks for submitting answers by email attachment after 2 minutes of completing the section) Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B has estimated that the value of the synergistic benefits from acquiring Firm Tis $9,500. a. If Firm Tis willing to be acquired for $30 per share in cash, what is the NPV of the merger? b. What will the price per share of the merged firm be assuming the conditions in (a)? c. In part (a), what is the merger premium? d. Suppose Firm Tis agreeable to a merger by an exchange of stock. If B offers four of its shares for every five of T's shares, what will the price per share of the merged firm be? e. What is the NPV of the merger assuming the condition in (d)? f. Are the shareholders of Firm T better off with the cash offer or the stock offer? 9. At what exchange ratio of B shares to T shares would the shareholders in T be indifferent between the two offers? (Show your answers and workings in the space provided. 25% penalty for submitting answers by email attachment within a minute of completing the section. 50% penalty for submitting answers by email attachment after a minute of completing the section B but before 2 minutes of completing the section, zero marks for submitting answers by email attachment after 2 minutes of completing the section)