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	900
Price per share	$31	$26

Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $2,900.

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

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?

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

Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers three of its shares for every 5 of T's shares, what will the price per share of the merged firm be?

Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers three of its shares for every 5 of T's shares, what is the NPV of the merger?