Sonny's is a rapidly growing firm that has just decided to have its stock listed on the Toronto Stock Exchange. To keep growing, it plans to make a few selected acquisitions during the next few years. At the same time, Sonny's has become more concerned about maximizing the value of the firm, and remaining independent.Please refer to data and questions in the images attached!

6 15 2 7 10 2 Ifcash is employed, the current market value of Gilfords is $50 million, the opportunity cost of capital is 18 percent, and Sonny's marginal tax rate is 35 percent. What is the most Sonny's can pay for Gilfords and still proceed with the acquisition? (6 marks) d. Now assume that stock will be employed. The market value of Sonny's is $400 million, and the number of shares of stock for Sonnyf's is 5 million. If Sonny's current shareholders will end up with at least 90 percent of the total number of shares outstanding in the combined rm, is a merger feasible? How many total shares will be outstanding after the merger? (6 marks) e. Explain what the primary differences are to both the bidder and the target if cash is used instead of stock. (6 marks) f. Many mistakes can occur that result in firms making inappropriate (i.e., non-wealth- maximizing) acquisitions. What are some of these mistakes? (6 marks) g. If Sonny's wants to make itself a more difficult target, what kinds of steps can be taken? (6 marks)