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:

	Firm A	Firm B
Number of outstanding shares	30000	22000
Price per share	$32.00	$25.00
Debt	$0	$0
Total earnings	$36,000.00	$30,000.00

What is the net present value of acquiring firm B in an all stock merger?

Multiple Choice

• $6,375

• $17,188

• $9,533

• $13,221

• $10,000