5. (20 points). Penn Corp. is analyzing the possible acquisition of Teller Company debt. Penn believes the acquisition ill increase its total aftertax annual indefinitely. The current market . Both firms have no I cash flows by $2 million value of Teller is $43 million, and that of Penn is $89 million. The appropriate discount rate for the incremental cash flows is 10 percent. Penn is trying to decide wr it should offer 40 percent of its stock or $61 million in cash to Teller's shareholders a. What is synergy from the merger? Synergy is-- b. What is the value of Teller Company to Penn Corp? The value t c. What is the cost of to Penn Corp of the cash offer? The cost is d. What is the cost of to Penn Corp of the stock offer? The cost is e. What is the NPV of the cash offer? The NPV is f. What is the NPV of the stock offer? The NPV is g. Which alternative should Penn use