Firm A has a value of $500 million and Firm B has a value of $300 million. Firm A has 1000 shares outstanding, and Firm B has 800 shares outstanding. Suppose that the merger would increase cash flows of the combined firm by $5 million in perpetuity. Assuming the cost of capital for the new firm is 5%. Suppose that instead of paying cash, Firm A acquires B by offering two (new) shares of A for every three shares of B. The net gain to Firm A's shareholders is around:

	A.	$30 million
	B.	$10 million
	C.	$70 million
	D.	$87 million
	E.	None of the above