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Herbal Gardens has a market value of $380 while Veggies has a market value of $530. Veggies is merging with Herbal Gardens and expects the

Herbal Gardens has a market value of $380 while Veggies has a market value of $530. Veggies is merging with Herbal Gardens and expects the combined firm to have a market value of $950. If the current Herbal Garden shareholders obtain $400 of equity in the new firm, how much synergy was allocated to the Veggies shareholders?

$0

$20

$25

$15

$40

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