Problem 2 Brivel closed a deal with the shareholders of Marlou Credit to buy the company at $ 31.20 per share. Below you find the data the analysts of ING gathered during the M&A process (attention: $40.000.000 with dots means 40 million. $60,00 with comma means 60 $60): Information about Brivel: Book Value of equity published on the Balance sheet: Book Value of liabilities published on the Balance sheet: $40.000.000 $50.000.000 Market Value of equity, based on share price value: $48.000.000 Market Value of liabilities, based on current currency prices e.g.: $52.000.000 Information about both companies: Brivel Marlou Credit Number of shares 800.000 600.000 Stock price $ 60,00 $ 24,00 Market Value of equity $48.000.000 $14.400.000 a) How would you advise the management of Brivel to pay for the deal: through a stock swap or in cash? Explain why. b) How many shares will be outstanding after the merger