Based on several financial analysis performed on the financial models, it is estimated that to acquire Monster, TCCC has to offer $13 billion to Monster shareholder, which represents a 32 percent premium over Monster’s current price. The form of payment for this acquisition will involve $6.5 billion of cash, $3.25 billion of stock and $3.25 billion of debt. The use of cash is justified by TCCC’s significant cash accounts. The use of stock is desired since TCCC’s stock is currently overvalued. From the perspective of Monster’s shareholders, accepting stocks give them the ability to defer a portion of the tax payment. Utilizing debt to finance another $3 billion of the cash requirement makes sense as TCCC currently has a very good credit rating which allows them to get low interest rates and realize a greater return on investment. On top of that, Monster currently has no significant long term debt. The proposed acquisition vehicle is a C-Corp holding company, which insulates TCCC from Monster liabilities, in particular the effect of its lawsuits.