Question 5 (15 marks) 1) A target company T is currently valued at $70 in the market. A potential acquirer, Firm A, believes that it can add value in two ways through the acquisition: $25 of value can be added through better working capital management, and an additional $10 of value can be generated by making available a unique technology only for firm A to expand the target's new product offerings. In a competitive bidding contest, how much of this additional value will the acquirer have to pay out to the target's shareholders to emerge as the winner? (Hints: You have to identify Company T's value to Firm A and Company T's value for any other firms that would bid) (5 marks) 2) Please IDENTIFY, DESCRIBE, and EXPLAIN FOUR potential PROBLEMS from which FIRM VALUE can be destroyed by an acquisition. (10 marks)