A Company is considering the acquisition of B Company. B Company has a capital structure consisting of $7.5 million (market value) of 11% bonds and $15 million (market value) of common stock.B company's pre-merger beta is 1.36.A Company's beta is 1.02, and both it and Ingram face a 40% tax rate.A company's capital structure is 40% debt and 60% equity.The free cash flows from Ingram are estimated to be $4.5 million for each of the next 4 years and a horizon value of $15 million in Year 4.Tax savings are estimated to be $1.5 million for each of the next 4 years and a horizon value of $7.5 million in Year 4.New debt would be issued to finance the acquisition and retire the old debt, and this new debt would have an interest rate of 8%.Currently, the risk-free rate is 6.0% and the market risk premium is 4.0%.

What is the value of B company's equity to A Company?(Round your answer to the closest thousand dollars.)