Part $3$ Mergers & Acquisitions

Question $1$

Bon Appetit Management Co $($BAM$)$ has announced a plan to acquire My Secret Recipe Corp $($MYSR$).$ MYSR is trading for $$10$ per share and total market cap is $$20$ million. If the talent of MYSR is combined with the BAM's management, the associated synergies are estimated to be $$5$ million. BAM is trading for $$25$ per share.

a$)$ Find out the per$-$share value of MYSR under the BAM's management.

b$)$ Determine the minimum exchange ratio in a stock$-$payment deal that MYSR$\text{'}$s shareholders would accept.