1. Cavalier Enterprises has agreed to be acquired by The Fox Hunt for some of The Fox Hunt stock. The Fox Hunt currently has 3,300 shares of stock outstanding at a price of $32 a share. Cavalier Enterprises has 2,400 shares outstanding at a price of $26 a share and no debt. The synergy of the acquisition is $2,800. Suppose The Fox Hunt agrees to pay $65,000 worth of their stock to acquire Cavalier Enterprises. What is the merger premium per share?

answer choice $32 $27.08 $1.08 $6 $26