Hello, I was giving by you guys the following answer to the questions below (Cost of cash offer) BUT THE ANSWER IS WRONG! COULD YOU PLEASE CHECK... THANKS

Question:Merger NPV (LO6, 7)Chatham Foods, which has 1 million shares outstanding, wishes to merge with Kent Drinks with 2.5 million shares outstanding. The market prices for Chatham Foods and Kent Drinks are $49 and $18 per share, respectively. The merger could create an estimated savings of $800,000 annually for the indefinite future. If Chatham Foods were willing to pay $25 per share for Kent Drinks, and the appropriate cost of capital is 14 percent, what would be the:

1. Cost of the cash offer?

Cost of the cash offer = shares outstanding*(offer price -market price per share of Kent)

Cost of the cash offer = 2,500,000*(25-18)

Cost of the cash offer = $17,500,000