The following data on a merger is given:

Firm A Firm B Firm AB Price per share $100 $10 Total earnings $500 $300 Shares outstanding 100 40 Total value $10,000 $4,000 $11,000 Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock.

A. Calculate the gain from the merger.

B. Calculate the NPV of the merger.

C. What will be the post-merger price per share for Firm A's stock if Firm A pays in cash?