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 1,700 1,000 Price per share $32 $26 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $3,100.

If Firm T is willing to be acquired for $29 per share in cash, what will the price per share of the merged firm be?

Price per share

$

$

$

$

$

32.06

30.24

29.49

35.26

33.66

If Firm T is willing to be acquired for $29 per share in cash, what is the merger premium?

Merger premium

$

$

$

$

$

$

3,000

3,000

3,100

6,000

3,135

2,865

If Firm T is willing to be acquired for $29 per share in cash, what will the price per share of the merged firm be? Price per share If Firm T is willing to be acquired for $29 per share in cash, what is the merger premium