In the fall of2009, Kraft Foods attempted to buy Cadbury plc. Data for each of the two companies are given in the table. Both companies are all equity financed. The CEO of Kraft Foods estimated that merger synergies had a present value of $5billion. Kraft offered each Cadbury shareholder 0.6393 shares in Kraft. Use the data in the table to answer the questions below.

Kraft Cadbury

Value of Firm

$45B $18B

Shares Outstanding

1.35B 1.04B

Stock Price

$33.33 $17.31

Part A.

How many shares will there be in the mergedcompany?

(Enter your number in billions and round your answer to fourdecimals.)

Part B.

What is the value of the mergedfirm?

(Enter your number in billions of dollars and round your answer to twodecimals.)

Part C.

What is the NPV of the offer to CadburyShareholders?

(Enter your number in billions of dollars and round your answer to twodecimals.)