Alpha Corporation is planning on merging with Gamma Corporation. Alpha will pay Gammas stockholders in shares of Alpha an amount equal to the current value of their stock plus $120, which equals one-half of the synergy. Alpha currently has 4,000 shares of stock outstanding at a market price of $21 per share. Gamma has 1,200 shares outstanding at a price of $10 per share. What is the value of the merged firm?

Multiple Choice

$88,120

$96,240

$96,000

$84,120

$92,360