Suppose there was an opportunity for DTE Energy (DTE) to acquire CMS Energy (CMS). DTE is the acquirer and CMS is the target. Prior to any merger speculation the share price of DTE is $78.47. DTE has 179 million shares on issue and $10,923 million in debt. Also prior to any merger speculation the share price of CMS is $35.03. CMS has 276 million shares on issue and $9,670 million in debt. You estimate that if the acquisition is completed, there would be cost reductions of $650 million per year on a before-tax basis and these cost reductions will continue at the same amount in perpetuity. A fair discount rate for estimating the value of synergies is 8%. The corporate tax rate is 35%. For simplicity, you can assume that any change in the capital structure of DTE does not affect the cost of equity. DTE makes the following offer to CMS shareholders. For each CMS share, the shareholder will receive $5.00 cash and 0.60 DTE shares. Questions 1. Estimate the post-merger DTE share price if CMS shareholders accept the deal. wwwwwwwwwwwww 2. From the perspective of CMS shareholders, who are sceptical about cost savings being achieved, what is the offer premium