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Penn Corporaton is analyzing the possible acquisition of Teler Company. Both firms have no debt. Penn belleves the acquisition wil increase its total attertax annual

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Penn Corporaton is analyzing the possible acquisition of Teler Company. Both firms have no debt. Penn belleves the acquisition wil increase its total attertax annual cash flows by $4.2 milison indefintrely. The current market value of Teller is $84 million, and that of Penn is $180.6 mition. The appropriate discount rate for the incremental cash flows is 10 percent. Penn is trying to decide whether it should offer 40 percert of its stock or 5123.9 milion in cash to Toller's shareholders. What is the cost of the cash alternative? What is the cost of the stock ahemative? What is the NPV of the cash alternotwe? What is the NPV of the stock altemative

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