The Hollings Corporation is considering a two-step buyout of the Norton Corporation. The fatter firm has 2.8 million shares outstanding and its stock price is currently $40 per share. In the two-step buyout, Hollings will offer to buy 51 percent of Norton's shares outstanding for $65 per share in cash and the balance in a second offer of 870,000 convertible preferred stock shares. Each share of preferred stock would be valued at 40 percent over the current value of Norton's common stock. Mr. Green, a newcomer to the management team at Hollings, suggests that only one offer for all Norton's shares be made at $62.25 per share. a. Calculate the total costs of the two alternatives. (Do not round intermediate calculations. Enter your answers in dollars, not millions (e.g., $123,456,000).) b. Which is better in terms of minimizing costs? Two step offer Single offer