Suppose Square (SQ) is looking to buy Afterpay (AFTPY) in a stock swap. SQ issues 0.4 of its shares for each share of AFTPY to complete the deal. Pre-announcement data (with some rounding to make the math easier): SQ AFTPY share price 250.00 70.00 shares outstanding 400 million 300 million market capitalization $100 billion $21 billion 

(a) If Izzy Weisman believes that the synergy resulting from the merger would be $5 billion in present value, find the post-announcement share price for SQ according to this estimate. 

(b) Find the breakeven synergy from the viewpoint of SQ’s shareholders

 (c) Suppose the head of AFTPY has decided he doesn’t want to be taken over. He floats the idea of a supermajority provision and having a staggered Board of Directors but he doesn’t know what either term means. Briefly explain.