the question is : Estimate the value of firm A and if the combined banq will save $6 million a year in operating expenses starting right away, estimate the value of the combined firm?

looking for help on this question! thanks for your time (will give review)

You are an equity analyst and have been asked to value a merger of two small firms. You collected following information on expected income next year Fum A Firm Net income 237 109 Book Value of Equity 1427 1156 Beta 11 Both tims are in stable growth and are growing 14% a year. The nisk free rate is 375. Both timate taxed at 27% Assume the Equity Risk Premium (after the risk free rate is subtracted) is 5.5%. The merger is motivated entirely by cost savings You are an equity analyst and have been asked to value a merger of two small firms. You collected following information on expected income next year Fum A Firm Net income 237 109 Book Value of Equity 1427 1156 Beta 11 Both tims are in stable growth and are growing 14% a year. The nisk free rate is 375. Both timate taxed at 27% Assume the Equity Risk Premium (after the risk free rate is subtracted) is 5.5%. The merger is motivated entirely by cost savings