The Sweet Shoppe and Candy Land are all equity-firms. The Sweet Shoppe has 800 shares outstanding at a market price of $96 a share. Candy Land has 2,700 shares outstanding at a price of $24 a share. The Sweet Shoppe is acquiring Candy Land for $65,000 in cash. The incremental value of the acquisition is $3,600.

1) What is the value of Candy Land to Sweet Shoppe?

2) What is the net present value (NPV) of acquiring Candy Land to The Sweet Shoppe?

3) What is the merger premium per share?

4) What is the post merger stock price per share of the acquiring firm?