Problem 21-10 Stock versus Cash Offers (LO2) Velcro Saddles is contemplating the acquisition of Skiers' Alrbags Incorporated The values of the two companles as separate entities are $52 million and $26 million, respecively. Velcro Saddles estimates that by combining the two companies, it will reduce marketing and administrative costs by $660,000 per year in perpetuity Velcro Saddles considers offering Sklers' shareholders a 50% holding in Velcro Saddies. The opportunity cost of caplial is 10% Q. What is the value of the stock in the merged company held by the onginal Sklers' shareholders? Note: Do not round Intermedlate calculations. Enter your answer in millions rounded to 2 decimal places. b. What is the cost of the stock alternative? Note: Do not round Intermedlate calculations, Enter your answer In mililons rounded to 2 decimal places. c. What is the merger's NPV under the stock olfer? Note: A negative omount should be Indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places