this is from a study guide and is not an exam question please dont flag my account

Fashion Inc. is a major U.S. distributor of high quality women's jewelry and accessories. The company's growth in recent years has been moderately above the industry average. However, competition is intensifying as a number of overseas competitors have entered this mature market. Although Fashion has been a publicly held company for many years, members of senior management and their families control 20% of the outstanding common stock. Martin Sllver, the Chief Executive Offices, has been under intense pressure from both internal and external large shareholders to find ways to increase the company's future growth. Silver has consulted with the company's investment bankers concerning possible merger targets. The most promising merger target is Flavoring International, a distributor of a broad line of gourmet spices in the U.S. and numerous other countries, In recent years, Flavoring's earnings growth rate has been above competitors and also has exceeded Fashion's experience. Superior income growth is projected to continue over at least the next five years. Silver is impressed with the appeal of the company's products to upscale customers, its strong operating and financial performance, and Flavoring's dynamic management team. He is more aggressive senior managers could boost the combined company's growth through increasing Fashion's operating efficiency and expanding Fashion's product line in countries outside the U.S. Alan Smith, who is Sliver's key contact at the investment banking firm, indicates that a key appeal of this merger to Flavoring would be Fashion's greater financial flexibility and access to lower cost sources of financing for expansion of its products in new geographic areas. Fashions has a very attractive performance based stock option plan. Flavoring's incentive plan is entirely based on cash compensation for achieving performance goals. Additionally, the 80% of Fashion's stock not controlled by management interests is very widely held and trades actively. Flavoring became a publicly held company three years ago and doesn't trade as actively. Silver has asked Smith to prepare a report summarizing key points favoring the acquisition and an acceptable acquisition price. In preparing his report, Smith relies on the following financial data on Fashion, Flavoring, and four recently acquired food and beverage companies. You can work using excel or by hand to solve these problems. Whatever method you use please show your work where required for fill credit. 1. What would be the Strongest Motivations for Fashion to acquire Flavoring? (5 points) 2. If Fashion issues common stock at the current market price and uses the proceeds to acquire Flavoring's outstanding common stock, the bootstrap earnings effect on post menger earnings would most likely occur if Flavoring's acquisition price is? (5 points) 3. Using the comparable transaction approach based on the four recently acquired companies, Smith determines an estimated takeover value based on equally weighted key valuation variable. He also calculates an adjusted estimated takeover value based on a higher calculation weighting ( 34% ) for Cash flow per share. The estimated takeover values based on initial takeover Value and adjusted take over value is closet to (12 points) 4. Based on pre-acquisition prices of $20 for Jones Foods, $26 for Dale Inc., $35 for Hill Brands, and $40 for lane Co., The mean takeover premium for Flavoring would be closest to: ( 8 points)