You are an advisor to Chotchike's, a small, publicly held restaurant chain in the Southwestern area of the U.S. Chotchkie's is considering an offer by another publicly traded restaurant chain, Wacky Wednesday's, to acquire all of the outstanding stock of Chotchkie's for $200 million. Chotchkie's balance sheet shows assets with an accounting book value of $70 million and no liabilities. Its assets have a tax basis of $40 million. Chotchkie's has 10 million shares of common stock outstanding, of which one-half is owned by pension funds and the other half owned by individuals, each with a tax basis $10 per share. Assume the individuals have held the stock over 12 months and face long-term capital gains rates of 20%. A. As structured, how much after-tax cash will the shareholders of Chotchkie's receive in the acquisition? B. Another potential buyer emerges, McTasty's, offering to acquire all of the assets of Chotchkie's for $240 million. Chotchkie's would then pay any after-tax proceeds from the sale out to its shareholders in complete liquidation. Ignoring non-tax factors, should Chotckie's take the $200 million offer from Wacky Wednesday's or the $240 million offer from McTasty's? Please provide numbers to support your decision.