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priot to a potential merger perry's cleaning has shares outstanding at a market price per share of $23. Shiny Clean Carpet Co. has 2,800 shares
priot to a potential merger perry's cleaning has shares outstanding at a market price per share of $23. Shiny Clean Carpet Co. has 2,800 shares outstanding at $16 per share. Assume Perry's cleaning has estimated the value of the synergistic benefits from acquiring shiny clean to be $3700. Neither firm has outstanding debt. The acquiring firm has offered a price of 17.50 per share to the target. If the deal goes through, what is the merger premium?
A. 4200
B. 3700
C. 2800
D. 5250
E. 0
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