Consider the following pre-merger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B Firm T Shares outstanding 5,800 1,300 Price per share $ 45 $ 16 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,400.

a. If Firm T is willing to be acquired for $18 per share in cash, what is the NPV of the merger? (Omit "$" sign in your response. Negative answers should be indicated by a minus sign.) NPV $

b. What will the price per share of the merged firm be, assuming the conditions in (a)? (Round the final answer to 2 decimal places. Omit "$" sign in your response.)

Price per share $

c. If Firm T is willing to be acquired for $18 per share in cash, what is the merger premium? (Omit "$" sign in your response.)

Merger premium $

d. Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers one of its shares for every two of T's shares, what will the price per share of the merged firm be? (Round the final answer to 2 decimal places. Omit "$" sign in your response.)

Price per share $

e. What is the NPV of the merger assuming the conditions in (d)? (Round the final answer to 2 decimal places. Omit "$" sign in your response. Negative answers should be indicated by a minus sign.)

NPV $