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Firms A and Firm B are both all-equity firms. Firm A has 70,000 shares outstanding and the stock is trading at $30 per share. Firm

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Firms A and Firm B are both all-equity firms. Firm A has 70,000 shares outstanding and the stock is trading at $30 per share. Firm B has 16,000 shares outstanding and the stock is trading at $20 per share. Firm A is considering offering $30 per share to acquire Firm B. The total value of synergy is $80,000. What would be the merger premium for shareholders of Firm B

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