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 Shares outstanding 1,700 1,000 Firm T

Price per share $ 32 $ 26 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $3,100.

Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers one of its shares for every 2 of T's shares, what will the price per share of the merged firm be? Price per share

$37.95 $32.75 $36.06 $41.75 $39.85 Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers one of its shares for every 2 of T's shares, what is the NPV of the merger? NPV

$10,122.73 $7,022.73 $12,727.45 $9,616.59 $10,628.86

Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers one of its shares for every 2 of T's shares, what will the price per share of the merged firm be? Price per share Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers one of its shares for every 2 of T's shares, what is the NPV of the merger