Question: Please let me know. Round to the nearest tenth Penn Corp. is analyzing the possible acquisition of Teller Company. Both firms have no debt. Penn

Please let me know. Round to the nearest tenth

Penn Corp. is analyzing the possible acquisition of Teller Company. Both firms have no debt. Penn believes the acquisition will increase its total aftertax annual cash flows by $4 million indefinitely. The current market value of Teller is $104 million, and that of Penn is $176 million. The appropriate discount rate for the incremental cash flows is 10 percent. Penn is trying to decide whether it should offer 36 percent of its stock or $115.9 million in cash to Teller's shareholders. What is the cost of the cash alternative? What is the cost of the stock alternative?What is the NPV of the cash alternative? What is the NPV of the stock alternative

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