The firm of which you are the CFO, the tom Company, wants to take over a competitor, whose name is Target Company. The following is known about this take-over:

• The WACC of the tom Company is 11.2%
• The WACC of Target Company is 8.9%
• Target Company has 1,200,000 shares outstanding and the current stock price is $8.15.
• The following cash flows are expected:

Year:	Synergy Savings at Target Company:	Synergy Savings at the tom Company:
1	$200,000	$550,000
2	$450,000	$700,000
3	$550,000	$750,000
4	$700,000	$1,500,000
5	$1,900,000	$2,300,000

Draw a graph in which you indicate the wealth for shareholders of the tom Company and Target Company when this take-over succeeds. Clearly indicate the benefit for the shareholders of the tom Company and Target Company if the take-over price is $9.25.