Company A is considering acquiring Company B. Analysts estimate merger synergies with a present value of $5.4 billion. Both companies are all equity financed.

Company A

Value of Firm (billion) $90.39

Shares Outstanding (billion) 1.65

Stock Price $54.78

Company B

Value of Firm (billion) $32.98

Shares Outstanding (billion) 0.80

Stock Price $41.22

Suppose that Company A proposes a mixed offer to acquire company B. Company A shareholders receive 0.589 shares in Company A and $34.50 cash for each Company B

share tendered.

What will Company A's stock price be after the acquisition?

What is the Net Present Value of the offer to Company A in $ billions?