Al's is analyzing the possible acquisition of Baker's. Both firms have no debt. Al's believes the acquisition will increase its total aftertax annual cash flows by $2,800,000 indefinitely. The current market value of Baker's is $91,000,000, and that of Al's is $143,600,000. The appropriate discount rate for the incremental cash flows is 9 percent. Al's is considering offering 40 percent of its stock for the acquisition. To Als the value of Bakers is ________, while the cost of the stock offer is ________.

A. $122,111,111; $106,284,444

B. $122,111,111; $57,440,000

C. $31,111,111; $36,400,000

D. $91,000,000; $57,440,000

E. $91,000,000; $106,284,444