Through a "Type C" reorganization, Springer Corporation was merged into Spaniel Corporation last year. Springer shareholders received 60% of the Spaniel stock in exchange for all of their Springer shares. Springer liquidated immediately after the exchange. At the time of the merger, Springer was worth $4,200,000. The Springer shareholders are promised that Spaniel will purchase for $6,000,000 all of their stock five years after the reorganization. If the shareholders use a 5% discount rate, should this offer be accepted? The present value factor for five years at 5% is 0.7835. , because the present value of receiving $6,000,000 in five years using a 5% discount rate is $fill in the blank 2 which is than the value of the stock at the time of the merger.