Alpha has a value of $500 million and Beta has a value of $200 million. Alpha and Beta have 4 million outstanding shares each. Suppose that the merger would increase the annual cash flows of the combined firm by $3.5 million in perpetuity. Assume the cost of capital for the new firm and synergies is 11%. Suppose that Alpha acquires Beta by offering 0.45 (new) shares of Alpha for every share of Beta. The net gain to Alpha's shareholders is closest to:

A. $24,702,194 B. $5,971,787 C. $4,702,194 D. $7,476,489 E. $14,576,803