Problem 3 (10 Marks) The following Shark Ltd plans on expanding market share by acquiring Minnow Ltd. facts are provided: Merged Company Item Shark Minnow Price per share (S) No. of shares Total earnings (S) Total market value (S) 20.00 100,000 200,000 2,000,000 5.00 100,000 75,000 500,000 The merged company will save $10,000 per year in costs and the required return for Shark is 10%. Shark will exchange 0.3 Shark shares for each outstanding Minnow Share Required: a. Complete the table for the merged company. (6 marks) b.What is the net cost of the takeover to Shark? (2 marks) What is the change in the total market value of the Shark shares that were on issue before the takeover? c. (2 marks)