Shareholders in firm B are paid the market value of their firm in shares of stock from firm A. The earnings of the combined firm are $68,000. Information on each firm, prior to merger is as follows: Number of outstanding shares Price per share Debt Total earnings Firm A 30000 Firm B 22000 $32.00 $25.00 $0 $0 $36,000.00 $30,000.00 129. What is the net present value of acquiring firm B in an all stock merger? A) $6,375 B) $9,533 C) $10,000 D) $13,221 E) $17,188 Ans: A Level: Challenge Subject: NPV Stock Merger Type: Problems