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In Norember 2021, Pfizer acquired Trillium Therapeutics, a clinical stage oncology company dereloping innovative therapies for the treatment of cancer. Pfizer paid $2,260 million (or $18.50 per stare) in cash, representing a hefty premium of 118% to gain access to Trillium's netrt-generation immuno-therepeutics for hematological malignancies. However, growth in oncology medicines is expected to be strong at 7.0% through 2030 . This acquisition is consistent with Pfizer's attempt to complement its drug pipeline, with the transaction expected to georate cash flows of $115 million next year. Previously, Pfizer made a $25 million investment in Trillium in 2020 to colllaborate on R\&D activities, Pfizer sets its cost of capital a) 11.0% for similar investments, (a) Based on the information above, what growth rate in cash flows is required to cover the cost of 2 cquiring Trillium Therapeutics? Would you have bought Trillium? Why? (Show colculations; 10 points) [gR=r(CP1/C0)] (b) Using the exhibit below, did Pfizet have the financial capacity to acquire Trillium Therapeutics? Why? (support answer with financial ratios; 10 points) challengefs)? Briefly describe. (10 points) Therapeutics? Why? (support answer with financial ratios; 10 points) (c) Based on the case study, what other strategies could Pfizer implement to address its main challenge(s)? Briefly describe. (10 points)