Considering 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--------------------------------6,600------------ 2,500

Price per share--------------------------------------- $47----------------$21

Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,900.

a.If Firm T is willing to be acquired for $23 per share in cash, what is the NPV of the merger?

NPV$ _________

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

Share price$ _________

c.If Firm T is willing to be acquired for $23 per share in cash, what is the merger premium?

Merger premium$ ____

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

Price per share$ _____

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

NPV$ _____