The book value and market value of Firm A is $29 million and $30 million respectively. The book value and the market value of Firm B is $10 million and $11 million respectively. Firm A is planning to acquire Firm B. The synergy of the acquisition is estimated to be $2 million. If the board of Firm B agrees to a merger if the price is $12 million paid in cash, what is the value of Firm A after the merger?

The correct answer is $31 million. Please let me know how to do this q. Thank you!