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Richie Rich, Inc. (RRI) is merging with Scrooge McDuck Enterprises (SME). SME will pay the stockholders of RRI an amount equal to the current value

Richie Rich, Inc. (RRI) is merging with Scrooge McDuck Enterprises (SME). SME will pay the stockholders of RRI an amount equal to the current value of their stock in RRI. SME currently has 5,600 shares of stock outstanding at a market price of $47 a share. RRI has 1,750 shares outstanding at a price per share of $21. The merged firm is expected to have net earnings of $57,800. What is the value of the merged firm?

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