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Suppose Coca Cola' s firm value is $200 million, and Pepsi's value is $140 million. Merging the two would allow a cost savings with a

Suppose Coca Cola' s firm value is $200 million, and Pepsi's value is $140 million. Merging the two would allow a cost savings with a present value of $25 million. If Coca Cola purchases Pepsi for $150 million. How much do firm Coca Colas shareholder gain from this merger?

Select one:

a. $20 million

b. $10 million

c. $5 million

d. $25 million

e. $15 million

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