Suppose you work as a strategic financial manager at Nadia Inc., a large telecommunications firm which is considering making an offer to purchase Shaan Inc. a smaller network company. You have collected the following information for this important financial decision: Nadia Shaan Price-earnings ratio 8 6 Shares outstanding 500,000 220,000 Earnings $1,500,000 $440,000 Securities analysts expect the earnings and dividends (currently $1 per share) of Shaan to grow at a constant rate of 4% each year. Nadia management believes that its acquisition of Shaan will generate some economies of scale increasing Shaan's dividend per share growth rate to 6% per year. Based on this belief, Nadia is considering the following two alternative ways of acquiring Shaan: Alternative 1 Acquire Shaan by paying $15 cash per share for Shaan's stock. Alternative 2 Acquire Shaan by share exchange ratio of 1:4 (i.e. one share of Nadia for 4 shares of Shaan). Required a. Which of the above two alternatives Should Nadia choose? Support your answer with calculations