Consider the following premerger information about bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B has 6,000 shares outstanding at a price per share of $46. Firm T has 1,900 shares outstanding at a price of $19 per share.

Firm B has estimated that the value of the synergistic benefits form acquiring Firm T is $9,600.

a) If Firm T is willing to be acquired for $21 per share in cash, what is the NPV of the merger?

b)What will the price per share of the merged firm be assuming the conditions in (a)

c)If Firm T is willing to be acquired for $21 per share in cash, what is the 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 %'s shares, what will the price per share of the merged firm be?

e) What is the NPV of the merger assuming the conditions in (d)