the management of Verizon plc a telecommunication company is considering a takeover bid for vodafone plc$,$ a smaller company in the same industry. a study had been commissioned by on the cost saving which such take over would generate. it has been estameted that annual cost saving of shs $45,000,000$ will be posible if vodafone plc is acquired. the net present value of this saving is put at shs $235,000,000.$ Both companies are financed enterily by equity. Verizon plc has $14$ millions shares outsatnding and these are cureently valued at shs $300$ each, while vodafone plc products has $3$ million outsatnding sahres which are currently valued at shs $200$ each. Some preliminary discussion suggests that the board of directors of vodafone plc would support a bid which offered a premium of $40\%$ on the current value of the companies shares. verizon plc has been building up its cash positionto allow it to take over of this nature.

required

$1.$ calculate the value of verizon plc after acquisistion of vodafone plc

$2.$ calculate the capital outlay by verizon plc to acquire vodafone plc

$3.$ net cost of acquisition of vodafone plc

$4.$ evaluate the proposed takeover from the position of verizone plc shareholders

$5.$ evaluate the proposed takeover from the position of vodafone plc shareholders

$6.$ Why verizon plc would prefer external growth through take over of vodafone plc rather than internal growthy?