10. Merger gains and costs (S32.4) Gobi Desserts is bidding to take over Universal Puddings.

Gobi has 3,000 shares outstanding, selling at $50 per share. Universal has 2,000 shares outstanding, selling at $17.50 a share. Gobi estimates the economic gain from the merger to be

$15,000.

a. If Universal can be acquired for $20 a share, what is the NPV of the merger to Gobi?