Firm X is going to acquire Firm Y. The acquisition will be done via a share exchange, whereby Firm X will exchange two of its shares for every one of Firm Ys shares. Synergy is $1,500,000 in total. Firm X (Bidder) Firm Y (Target) Shares Outstanding 1,500,000 150,000 Price per Share $50 $80 Earnings 2,400,000 1,950,000 43. What is the takeover premium in dollars?

A) $5,700,000

B) $1,500,000

C) $2,751,000

D) $2,500,000

E) $3,000,000

44. For the NPV of the transaction to be zero for Firm X, how many shares would Firm X have to give to Firm Y?

A) 242,170

B) 274,576

C) 240,000

D) 270,000