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Jam Co is considering acquring Marma Inc. Nelther firm has debt. Jam has estimated that...

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Jam Co is considering acquring Marma Inc. Nelther firm has debt. Jam has estimated that the acquisition would increase its annual aftertax cash flow by $390,000 indefinitely. The current market value of Marma is $8 million. The current market value of Jam Co is $29 million. The discount rate to evaluate the deal is 8 percent. Jam Co is trying to decide whether it should offer 30 percent of its stock or $12 million in cash to Marma. W. What is the cost to Jam of each alternative? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e.g., 1,234,567.) b. What is the NPV to Jam of each alternative? (Do not round intermedlate calculations and enter your answers in dollars, not millions of dollars, e.g., 1,234,567.)

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