1. (50 points) Firm A has 20 shares outstanding worth $3 each. Firm B has 20 shares outstanding worth $2 each. A. If the two firms merge with a swap of their shares and there is a synergy of $45, what is the value of the equity of the new company? B. If the term of the merger is that firm A will offer 1.25 of its shares to each share of firm B, how many shares will be outstanding in the new company? C. What is the share price for the new company? D. What is the gain for firm A shares from the merger? E. What is the gain for firm B shares from the merger