Ontario Tech has 10 million shares outstanding, each of which has a price of $8. It has made a takeover offer of Island Inc., which has 1.5 million shares outstanding and a price per share of $6. Assume that the takeover will occur with certainty and all market participants know this. Furthermore, there are no synergies to merging the two firms. a. Assume Ontario Tech made a cash offer to purchase Island Inc. for $11 million. What happens to the price of Ontario Tech and Island Inc. on the announcement? What premium over the current market price does this offer represent? Show your calculations. b. Assume Ontario Tech makes a stock offer with an exchange ratio of 0.80 (i.e., # of Ontario Tech stock per Island Inc. stock). What happens to the price of Ontario Tech and Island Inc. this time? What premium over the current market price does this offer represent? Show your calculations