Question 6(16 points) Firm BYR is interested in buying Firm TG. Firm TGT currently has 5M shares outstanding priced at 530 per share. If Firm BYR were to buy all of the shares of Firm TGT, then they would have to offer a 40% Calculate the value created from the merount rate for this "value creution" perpetuity is 8% med from the merger and the cost of the merger. Is the merger worth it? b) Prior to the merger, Firm BYR had 20M shares outstanding priced at $50 per share. Suppose that Firm BYR issues shares to pay for all of the shares of Firm TGT (with the 40% premium). What percentage of Firm BYR is sold to purchase all of the shares of Firm TGT? (5 points)