Question: 2. Evaluate the two offers in Exhibit 5. What explains the two structures? Verizon offers to pay $8.75 of cash remainder in stock, a breakup

2. Evaluate the two offers in Exhibit 5. What explains the two structures? Verizon offers to pay $8.75 of cash remainder in stock, a breakup fee of $240 million and an A_ bond rating. Qwest offers more cash at $10.50 per share, has a B+ bond rating and also very high leverage

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