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Sweet Cola Corp. $($SCC$)$ is bidding to take over Salty Dog Pretzels $($SDP$).$ SCC has $3,500$ shares outstanding, selling at $$60$ per share.

SDP has $3,000$ shares outstanding, selling at $$18\mathrm{.}50$ a share. SCC estimates the economic gain from the merger to be $$28,000.$

a$.$ If SDP can be acquired for $$22$ a share, what is the NPV of the merger to SCC$?$

b$.$ What will SCC sell for, per$-$share, when the market learns that it plans to acquire SDP for $$22$ a share? $($Do not round intermediate

calculations. Round your answer to $2$ decimal places.$)$

c$.$ What will SDP sell for?

d$.$ What are the percentage gains to the shareholders of each firm? $($Do not round intermediate calculations. Enter your answers as a

percent rounded to $2$ decimal places.$)$

e$.$ Now suppose that the merger takes place through an exchange of stock. On the basis of the premerger prices of the firms, SCC

sells for $$60,$ so instead of paying $$22$ cash, SCC issues $0\mathrm{.}37$ of its shares for every SDP share acquired. What will be the price of the

merged firm? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

f$.$ What is the NPV of the merger to SCC when it uses an exchange of stock? $($Do not round intermediate calculations. Round your

answer to $2$ decimal places.$)$

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