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Firm A has 10,000 shares of stock outstanding, each with a market price of $25 per share. Firm B has 7,500 shares of stock outstanding,

Firm A has 10,000 shares of stock outstanding, each with a market price of $25 per share. Firm B has 7,500 shares of stock outstanding, each with a market value of $10 per share. Firm A can acquire Firm B for $82,500 in either cash or stock. Both firms are totally financed with equity. Total synergy from the acquisition is $12,500. What is the NPV of acquiring Firm B with stock?

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