Quest, Inc., and Dale Solutions, Inc., are negotiating an acquisition of Dale by Quest. The management teams at both companies have tentatively agreed upon a transaction value of about $12.00 per share of Dale Solutions stock but are presently negotiating alternative forms of payment. Gehan, CFA, works for Dale Solutions' investment team and is evaluating three alternative offers presented by Quest: Cash Offer: Quest will pay $12.00 per share of Dale stock. Stock Offer. Quest will give Dale shareholders 0.80 shares of Quest stock per share of Dale stock. Mixed offer: Quest will pay $6.00 plus 0.40 shares of Quest stock per share of Dale stock. Gehan estimates that the merger of the two companies will result in economies of scale with a net present value of $90 million. To aid in the analysis, Gehan has also compiled the following data: Quest Inc Dale Solutions Pre-merger stock price $15.00 $10.00 Number of shares outstanding (millions) 75 30 Number of shares outstanding (millions) $1,125 $300 Based only on the information given, which of the three offers should Gehan recommend to the Dale Solutions management team