Use the following to answer the first six questions:

ReedInc. a real estate development and consulting company with approximately $2 billion in sales is based in Jacksonville, FLA. The company specializes in property sales and marketing and receives over 5,000 unique visitors daily on its website. Due to weakening demand in the real estate market in Floridain recent years, Reed's executive management team believes that the companycan achieve a more rapid growth by making the right acquisitions. The firm's management team asks the firm's Director of Planning and Development, James Bailey, CFA to analyze potential target alternatives. In the next executive meeting, Baileypresents areport showing three potential acquisition targets:

Jackson PartnersInc.:Firm is a financial service consultant company and has relationshipswith major Banks and Finance Houses in FLA. In a potential merger, all Jackson Partners' assets and liabilities will be absorbed by Reed.

Legal ServicesInc. Firm is a legal service consultancy company. The companyhas a great reputation in the legal community in FLA. Reedwants tokeep the Legal Servicesbrand name and operationsin an acquisition.

REPMInc. Firm is a real estate portfolio management company. The services include buying properties, selling properties, and renting properties. A successful acquisition by Reedwould involve combining operations and setting up a new company.

After many discussions and following Bailey's estimate of approximately $1,200 million of cost reduction synergies from the merger, Reeddecides to proceed with a takeover offer for Legal ServicesInc. Bailey's supervisor asks him to evaluate the deal based on a stock offer in which Reedexchanges 0.80 shares of Reedstock for each share of Legal Servicesstock. Baileygathersthe following data for his analysis: