Penn Corp. is analyzing the possible acquisition of Teller Company. Both believes the acquisition will increase its total aftertax annual cash flow by $1,579,479.31 indefinitely. The current market value of Teller is $27,358,635 and that of Penn is $62,076,117. The appropriate discount rate for the incremental cash flow is 13.7%. Penn is trying to decide whether it should offer 32% of its stock or $38,689,532 in cash to Teller's shareholders.

What is the NPV of the stock offer?

HINT: Subtract the equity cost (as computed in the previous problem) from the value of the combined firm.