QUESTION Gembira Terbang Couriers is analyzing the possible acquisition of Sedap Sangat Restaurants. Neither firm has debt. The forecasts of Gembira Terbang show that the purchase would increase its annual after-tax cash flow by $450,000 indefinitely. The current market value of Sedap Sangat is $14 million. The current market value of Gembira Terbang is $31 million. The appropriate discount rate for the incremental cash flows is 8 percent. Gembira Terbang is trying to decide whether it should offer 35 percent of its stock for $18.5 million in cash to Sedap Sangat. i. What is the synergy from the merger ii. What is the value of Sedap Sangat to Gembira Terbang? iii. What is the cost to Gembira Terbang of each alternative? iv. What is the NPV to Gembira Terbang of each alternative? v. Which alternative should Gembira Terbang use