Q Ltd., an oil and gas transportation company, has 150 million shares in issue, which are currently trading at a market price of $8.00 each. The company is considering friendly takeover of Buntner Corp., a pipeline manufacturer. Buntner Corp. has 100 million shares in issue, trading at a market price of $2.20 each. Buntner Corp. cash flow was negative in 3 out of the last 5 years. Q management believes that managerial and other synergies arising out of the takeover would result in Buntner Corp. net cash flow after tax to turn positive in the 2nd year to $50 million in perpetuity and result in a saving of %100 million after acquisition. The WACC is estimated to be 10%0You were appointed by Q Ltd. to plan the acquisition and provide advice on valuation and to show how this total value gain would be distributed between the shareholders of the two companies answer the bellow questions:

2.1 what is the value of the target to Q ltd.

2.2 how much should Q pay for the acquisition .