One day, your boss (you work for an investment bank) calls to inform you she just got word from a client: apparently, a competitor considers making an offer to buy the client's company. The offer will be $30b. for 100% of the company. Your boss asks you to quickly run some numbers and tell her if this is a fair offer, and if she can advise the client to accept it (or not). You look into the client's company and find it has a 5% cost of capital, a 20% tax rate, a 20\% EBIT Margin, an annual average CAPEX of $500mn. (D\&A can be disregarded, to keep things simple), and its latest revenues was $10bn. Please answer the following questions: (a) Is the \$30bn, a fair price? Please explain why - or why not? (b) What would the company's financial performance have to be in order to justify the $30bn. price? Please answer by completing all answer boxes in the solutions template, give brief verbal or numerical explanations of your solutions, and reference your calculated numbers in your essay answer. Question 2: Investment Evaluation [Please insert your Question 2a and 2b answers and your verbalumerical explanations of your results here. Extend the length of the text box as much as necessary]