Raven Berhad $($Raven$)$ is a manufacturing company. It is currently considering taking over

another company, known as Manu Berhad $($Bumblebeet$).$ The board of directors of

Raven Berhad intends to make a bid soon and has now approached you to assist them to

ascertain a value on Manu. You are given the following information:

Both Raven and Manu are $100\%$ owned by their shareholders. Raven estimates that

the value of the synergistic benefit from acquiring Manu is RM$300,000.$

Raven is evaluating two possible options as follows:

i$.$ To pay RM$2\mathrm{.}50$ in cash for every share of Manu

ii$.$ To offer its $5\%$ of unit shares in issue to Manu's shareholders

From the above information you are required to:

a$.$ Calculate the value of Manu to Raven.

b$.$ Determine the Net Present Value $($NPV$)$ for each option.

c$.$ Based on the NPV $($in part b$),$ choose the best option for Raven. Interpret your findings to Raven.