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Use the following information to answer the question. Round your answers if necessary, to two decimal places. Firm A can acquire firm B for $78,750

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Use the following information to answer the question. Round your answers if necessary, to two decimal places. Firm A can acquire firm B for $78,750 in cash or with stock worth $78,750 priced at its current price of $25 per share of stock. The synergy value of the deal is $15,000. Both firms are 100% equity financed. Firm A: Number of Shares = 10,000 ; Price per Share = $25.00 Firm B: Number of Shares = 10,000 : Price per Share = $10.00 What is the NPV of acquiring firm A when stock financing is used? A) $8,556 B) $8.925 C) $8,122 D) $5,000 E) $5.510

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