Consider the following premerger 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		4,600			1,000
Price per share	$	40		$	14

Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $8,800.

a.	If Firm T is willing to be acquired for $16 per share in cash, what is the NPV of the merger? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

NPV

$

b.	What will the price per share of the merged firm be assuming the conditions in (a)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Share price

$