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38 Kenith Corp. is considering acquiring Spritely Inc. Both firms have no debt. Kenith estimates...

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38 Kenith Corp. is considering acquiring Spritely Inc. Both firms have no debt. Kenith estimates that the deal will increase its annual cash flows by $2 million indefinitely. The current market value of Kenith is $52 million, and that of Spritely is $86 million. The discount rate for the incremental cash flows is 10 percent Kenith can offer 40 percent of its stock or $64 million in cash to Spritely shareholders. What is the cost of each alternative? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e.g. 1,234,567.) What is the NPV of each alternative? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e... 1,234,567) 2 points 8 01:56:24 b. a. Cost of cash Cost of stock b. NPV of cash NPV of stock ME Grow

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