Wagirin.Ltd, a retail company, wants to acquire Sabeni.Ltd, a merchandise company. The value of the acquisition is SG$ 50,000,000 worth of Wagirin.Ltd stocks. The acquisition will bring incremental value as of SG$ 10,250,000. Sabeni.Ltd has 22,000 stocks outstanding with the price of SG$ 2,250 per share. Wagirin.Ltd has stocks outstanding as of 100.000 shares with the price of SG$ 11,000 per share. The negotiation has an actual price paid for the acquisition using company stock as of SG$ 53,500,000.

Required:

1. The value of Sabeni.Ltd for Wagirin.Ltd

2. The net present value of the acquisition.

3. Explain should Wagirin.Ltd acquire Sabeni.Ltd. Give your reason