QUESTION 3 a) Firm M is the bidding firm and Firm N is the target firm. Their financial data is as follows Firm M Firm N Particulars Total Earnings (E) No. of shares outstanding (S) 5 Million EPS P/E Ratio Market Price/share US15 Million US10 Million 5 Million US2 4 US$4 US$3 US$12 i. Calculate the weighted average P/E for the combined firm MN. (1 mark) ii. Calculate the maximum number of shares firm M will be willing to offer to the stockholders of firm N at the P/E calculated in (i) above. What will be the minimum number of shares acceptable to the stockholders of firm N at the same P/E level? (3 3 marks) ii. Name three defense mechanism available for the target firms for thwarting unwanted takeovers (3 marks) b) Write short notes on the following forms of corporate restructuring (5 marks each) i. Spin-off I. Equity carve-out