Software Inc. is planning a friendly takeover of Digital Corp. Software's stock currently trades at $30 per share (100 million shares outstanding), Digital's stock price is $8 (50 million shares outstanding(. Acquisition will be in a form of equity swap with offer price for Digital's stock at $12 per share:

a)find individual stock prices of both companies after announcement.

b)find PPS of a combined firm after the takeover.

c) find the premium that acquiring firm will pay (in $ per share).