Question $2$: Mergers and Acquisitions $(20$ marks$)$ Blenheim PLC is considering making an offer to purchase the Howard Department Store. The vice president of finance has collected the following information: Blenheim also knows that securities analysts expect the earnings and dividends of Howard to grow at a constant rate of $5$ percent each year. Blenheim management believes that the acquisition of Howard will provide the firm with some economies of scale that will increase this growth rate to $6$ percent per year. A$.$ What is the value of Howard to Blenheim? B$.$ What would Blenheim's gain be from this acquisition? C$.$ If Blenheim were to offer $\backslash (\backslash$$ $38\backslash )$ in cash for each share of Howard, what would the NPV of the acquisition be$?$ D$.$ What's the most Blenheim should be willing to pay in cash per share for the stock of Howard? E$.$ If Blenheim were to offer one of its shares in exchange for $1\mathrm{.}75$ shares of Howard, what would the NPV be$?(2$ marks$)$ F$.$ If shares are exchanged in proportion to the current market price, what would be the NPV of the acquisition? G$.$ Why is NPV or gain of acquirer for a cash offer greater than NPV or gain from a proportional stock offer? H$.$ Name and explain TWO defensive tactics of each type: pre$-$offer and post$-$offer.