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4.(16%) The following terms of M&A agreement call for the exchange of Banc FIRST common shares for each share of Banc Target on the effective date. If the market price of Banc FIRST common stock is between $X, and SX2 a share on the effective date, the exchange ratio will result in a market equivalent value of $N in Banc FIRST common stock. If the market price of Banc FIRST common stock is above $X, a share, Banc Target shareholders will receive 0.75 Banc FIRST common shares. And if the market price of Banc FIRST stock is below $X, Banc Target shareholders will receive 0,80 Banc FIRST common shares. Note that the payoff function of Banc Target shareholders is continuous. Also, if the market price of Banc FIRST common stock on the effective date is $80, Banc Target shareholders receive the cash of $63 for each share of Banc Target. (a) (3%) Find the value of N. (b) (2%; 2%) Find the values of X, and X2. (c) (2%; 2% 2%) The payoff function for each Banc Target share = A*max(Sr- X1,0)+B*max(ST-X2,0)+C*ST, where Sr= the market price of Banc FIRST common stock on the effective date. Find the values of A, B, and C. (d) (3%) Calculate the equivalent exchange ratio (up to 4 decimal places) for each Bane Target share when the market price of Banc FIRST common stock on the effective date is $81. 4.(16%) The following terms of M&A agreement call for the exchange of Banc FIRST common shares for each share of Banc Target on the effective date. If the market price of Banc FIRST common stock is between $X, and SX2 a share on the effective date, the exchange ratio will result in a market equivalent value of $N in Banc FIRST common stock. If the market price of Banc FIRST common stock is above $X, a share, Banc Target shareholders will receive 0.75 Banc FIRST common shares. And if the market price of Banc FIRST stock is below $X, Banc Target shareholders will receive 0,80 Banc FIRST common shares. Note that the payoff function of Banc Target shareholders is continuous. Also, if the market price of Banc FIRST common stock on the effective date is $80, Banc Target shareholders receive the cash of $63 for each share of Banc Target. (a) (3%) Find the value of N. (b) (2%; 2%) Find the values of X, and X2. (c) (2%; 2% 2%) The payoff function for each Banc Target share = A*max(Sr- X1,0)+B*max(ST-X2,0)+C*ST, where Sr= the market price of Banc FIRST common stock on the effective date. Find the values of A, B, and C. (d) (3%) Calculate the equivalent exchange ratio (up to 4 decimal places) for each Bane Target share when the market price of Banc FIRST common stock on the effective date is $81