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ONLY F NEEDED Sweet Cola Corporation (SCC) is bidding to take over Salty Dog Pretzels (SDP) SCC has 3,000 shares outstanding. selling at $70 per

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Sweet Cola Corporation (SCC) is bidding to take over Salty Dog Pretzels (SDP) SCC has 3,000 shares outstanding. selling at $70 per share SDP has 2,000 shares outstanding, selling at $1950 a share SCC estimates the economic gain from the merger to be $24,000 a. If SDP can be acquired for $24 a share, what is the NPV of the merger to SCC? b. What will SCC sell for, per-share, when the market learns that it plans to acquire SDP for $24 a share? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. What will SDP sell for, per share, if the market learns about the acquisition? d. What are the percentage gains to the shareholders of each firm? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. e. Now suppose that the merger takes place through an exchange of stock On the basis of the premerger prices of the firms. SCC sells for $70, so instead of payng $24 cash, SCC issues 034 of its shares for every SDP share acquired What will be the price of the merged firm? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. f. What is the NPV of the merger to SCC when it uses an exchange of stock? Note: Do not round intermediate calculations. Round your answer to 2 decimal places

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