Velcro Saddles is contemplating the acquisition of Skiers' Airbags Incorporated. The values of the two companies as separate entities are $$30$ million and $$15$ million, respectively. Velcro Saddles estimates that by combining the two companies, it will reduce marketing and administrative costs by $$550,000$ per year in perpetuity. Velcro Saddles can either pay $$19$ million cash for Skiers' or offer Skiers' a $45\%$ holding in Velcro Saddles. The opportunity cost of capital is $10\%.$

Required:

a$.$ What is the gain from merger?

Note: Enter your answer in millions rounded to $2$ decimal places.

b$.$ What is the cost of the cash offer?

Note: Enter your answer in millions.

c$.$ What is the cost of the stock alternative?

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $2$ decimal places.

d$.$ What is the NPV of the acquisition under the cash offer?

Note: Enter your answer in millions rounded to $2$ decimal places.

e$.$ What is its NPV under the stock offer?

Note: Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Enter your answer in millions rounded to $2$ decimal places.

$\backslash$table$[[$a$.$ Merger gain,,million$],[$b$.$ Cost of cash offer,,million$],[$c$.$ Cost of stock offer,,million$],[$d$.$ NPV of cash offer,,million$],[$e$.$ NPV of stock offer,,million$]]$