Assume that both firms have no debt outstanding.

Firm A Firm B

Shares Outstanding $5,2001,100$

Price per Share $$52$ $$22$

Firm A has estimated that the value of the synergistic benefits from acquiring Firm B is $$7,800.$

$($a$)$ If Firm B is willing to be acquired for $$24$ per share in cash, what is the NPV of the merger?

$($b$)$ What will the price per share of the merged firm be assuming the conditions in $($a$)?$

$($c$)$ If Firm B is willing to be acquired for $$24$ per share in cash, what is the merger premium?

$($d$)$ Suppose Firm B is agreeable to a merger by an exchange of stock. If Firm A offers one of its

shares for every two of B$$s shares, what will the price per share of the merged firm be$?$

$($e$)$ What is the NPV of the merger assuming the conditions in $($d$)?$s