Barrison is investigating the possible acquisition ofSoulmaster. The two firms have the following basic data:
                                                                Barrison                    Soulmaster
     Numberofshares                            3,000,000                  1,200,000
     Currentstockprice                          $75.00                       $25.00
The combined firm will result in asynergy gains of $15m.
a.        What is thevalue of of the combined firm?
b.        What is the NPVof acquisition if Barrison pays $30 in cash for each share ofSoulmaster?
c.        What is the NPVof the acquisition if Barrison offers one share of Barrison forevery two shares of Soulmaster?
