Question 3) (20 marks) The Bidder has offered 1 bidder share for two target shares. You observe the following balance sheet for the bidder and target: Target Bidder Assets 3,000,000 15,000,000 Debt 1,200,000 8,000,000 Equity 1,800,000 7,000,000 Shares outstanding 90,000 250,000 Current price per share $15 $35 Market value of assets (replacement cost) $1,500,000 $17,000,000 a) (5 marks) Describe two different roes an investment bank may play in this type of transaction (ie. Buy-side, sell-side, fairness opinion) b) (4 marks) Calculate the Tobin's Q for each firm. Which firm has the most potential growth options? Explain your reasoning. c) (1 mark) What premium ($ and %) has the bidder offered for the target? d) (2 marks) Is the transaction likely to be taxable for the target shareholders? Why or why not? e) (2 marks) Post acquisition, what fraction of the combined firm will be held by the target shareholders? f) (6 marks) Prepare the balance sheet for the combined company assuming purchase accounting