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Firm A is acquiring Firm B. Firm A's share price is $12and Firm B's share price is $4. Both firms have 1 million shares outstanding.

Firm A is acquiring Firm B. Firm A's share price is $12and Firm B's share price is $4. Both firms have 1 million shares outstanding. Firm A expects a discounted synergistic value of $2million from the merger. If Firm A pays $5million cash to Firm B's shareholders, what is the value of the merged firm?

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