1. Note the information below about the two companies before the merger, namely the company that made the offer (Firm Rose) and the target company (Firm Iris). Both companies have no debt. Rose's company estimates that the synergy value of the Iris Company acquisition is $35,000.

	Firm Rose	Firm Iris
Shares Outstanding	12,350	7,880
Price per share	$ 58	$ 24

1. If Iris's company wanted a $26.5 per share acquisition in cash, what would npv be from the merger? (6 points)
2. What is the share price of the company after the merger in condition (a)? (6 points)
3. What is the cost or premium of the merger? (6 points)
4. Suppose Iris Company agrees to a merger with the shares. If Rose Company offers one share for every three shares of Iris Company, what is the share price per share after the merger? (6 points)
5. What is the NPV of this merger in condition at (d)? (6 points)