Proctoring Enabled: Final Exam 2 38 points Saved Dodgeball Co is evaluating the acquisition of Tennis Inc. The values of the two companies as separate entities are $48 million and $24 million, respectively. Dodgeball Co estimates that the combination of the two companies will reduce costs by $640,000 per year in perpetuity. Dodgeball Co considers offering Tennis Inc shareholders a 50% holding in Dodgeball Co. The cost of capital is 8% a. What is the value of the stock in the merged company held by the original Skiers' shareholders? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Value of the stock 01:20:38 million b. What is the cost of the stock alternative? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Cost of the stock million c. What is the merger's NPV under the stock offer? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) NPV million Help Save & Exit Submit 10 Quiz 100 Collapse