Using the Tesla Solar City Case from Harvard Business Review:

How would we appraoch the following problems, especially the calculations for $2-5?$

$1.$ Why does Tesla want to acquire SolarCity? Is there a compelling economic rationale for the merger.

$2.$ Assume that the market value of debt and equity for Tesla and SolarCity on June $21,2016$ are an accurate reflection of the value of each firm before the merger. Estimate the value of the merged firm using Tesla's estimate of the market value of synergies.

$3.$ Assume that SolarCity's shareholders will receive $0\mathrm{.}1265$ shares of Tesla stock for each of their shares and that the value of both Tesla and SolarCity will stay constant throughout the merger. What is the premium Tesla is offering to SolarCity shareholders?

$4.$ How does your analysis compare to the market's reaction to the announcement on June $22,2016?$ What does the market reaction imply about the merger?

$5.$ Reassess the market's reaction on July $29,2016.$ What should Joan Bannister say to her clients who own SolarCity convertible debt or Tesla equity? More broadly, how does the merger impact the stakeholders of both firms?