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New England Fisheries (NEF) has 18,000 shares outstanding at a market price per share of $14. Maryland Fish Markets (MFM) has 7,000 shares outstanding at

New England Fisheries (NEF) has 18,000 shares outstanding at a market price per share of $14. Maryland Fish Markets (MFM) has 7,000 shares outstanding at a market price of $21 a share. Neither firm has any debt. MFM is acquiring NEF for $275,000 in cash. What is the merger premium per share?

$1.43

$1.28

$.81

$1.04

$2.07

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