Fly$-$By$-$Night Couriers is analyzing the possible acquisition of Flash$-$In$-$Pan Restaurants. Neither firm has debt. The forecasts of Fly$-$By$-$Night show that the purchase would increase its annual after$-$tax value of Flash$-$In$-$Pan is cash flow by $$340,000$ indefinitely. The current market value of Flash$$In$-$Pan is $$9$ million. The current market value of Fly$-$By$-$Night is $$19$ million. The appropriate discount rate for the incremental cash flows is $8\%.$ Fly$-$By$-$Night is trying to decide whether it should offer $40\%$ of its stock or $$13$ million in cash for Flash$-$In$-$Pan.

Synergy Value $$4,250,000$

Value Flash Pan to Fly$-$By$-$Night $$13,250,000$

Cost of Cash $$13,000,000$

Questioned needed answering.

$($c$2)$ What is the cost to Fly$-$By$-$Night in stock?

$($d$1)$ What is the NPV to Fly$-$By$-$Night of cash?

$($d$2)$ What is the NPV to Fly$-$By$-$Night of stock?