Penn Corp. is analyzing the possible acquisition of Teller Company. Both believes the acquisition will increase its total aftertax annual cash flow by $1,548,546.42 indefinitely. The current market value of Teller is $25,094,080 and that of Penn is $68,530,668. The appropriate discount rate for the incremental cash flow is 15.2%. Penn is trying to decide whether it should offer 34% of its stock or $36,548,389 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.