NY Corporation has 4,000,000 shares outstanding which is selling at $45 per share. It intends to acquire e-Build Corporation which has 2,500,000 shares outstanding, selling at $10 a share. NY Corporation estimates the economic gain from the merger to be $15,000,000. (1) Calculate the possible selling price of NY Corporation when the market learns that it plans to acquire e-Build Corporation for $15 a share. Moreover, calculate the percentage gains to the shareholders of NY Corporation. [15 marks] (ii) Suppose that the merger takes place through an exchange of stock. Based on the premerger prices of the firms, instead of paying $15 cash, NY Corporation issues 0.30 of its shares for every e-Build Corporation share acquired. Calculate the price of the merged firm. [15 marks] (iii) To utilize the operating losses of the target firm is the economic justification and to reduce the price-to-earnings ratio is the financial justification for takeovers. Critically discuss each of them. [Word Limit: 1200 words]