Consider two firms A and B with the following characteristics: Firm A Firm B Market price per share $200 $100 Number of shares 1,000,000 500,000 Market value of firm $200 million $50 million Merging the two firms would allow cost savings (or synergies) of $25 million. Suppose that firm A would finance the merger by stock and offers 325,000 shares (that is, 0.325 million shares) in exchange for the 500,000 target shares of firm B. 1.) What will the new stock price after the merger of firm A and firm B be closest to? A. $190 B. $195 C. $200 D. $205