On 30 October 2912 it was publely announced that Disney (DiS), a listed largo global media and entertainment company, would acouire Likcasfiln in a 50 bif cash and 50 Ss herip deal Tws woud see 40 mition new shares in 015 issued Lucasfim is a private company, wholly owned by founder, George tucas As an independent company fircasfilm is expecied to generate $100 milion every year from various royalty and producfion fees; and an extra free cash flew of 3400 mailion wn yours it produses a movie. On average, Lucastilm produces a mavie eviry tive years. and this schedule is not expected to be aftected by the acguision. With the next ielease phanned for 2015 . The beti on DiS is 115 , the risktree rate is 3%, and the corporate tax rate is 30%. DiS shares closed at 54912 after the announcorvest Assume both companies face a cost of cagital of 5% over the risk.tree rate and long-teren growth rate of os. 1. Estimate a spondalone valuy tor the target, stating all necessary assemptions. 2. What is the tof yoling of the deal on the inneuncemeot date? control premivief? 4. What is yoting dounan fick Describe how it could exist in this transacioon