Salmon Enterprises can acquire Trout, Inc for $250,000 in either cash or stock. Both companies are 100% equity financed. The synergy value of the acquisition for Salmon is $35,000. Currently Salmon has 25,000 shares outstanding which trade at $29 a share, whereas Trout has 15,000 shares outstanding that trade at $14 a share.

15. What is the merger premium over Trout's stock price? A. 19% B. 16% C. 21% D. 23%

16. What is the value of Trout to Salmon? A. $235,000 B. $245,000 C. $260,000 D. $285,000