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Use the following information to answer the questions. 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 questions. 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 will be the value of the post-merger firm following a cash acquisition? O A) $261,250 OB) $262,500 OC) $337,500 D) $650,000 E) None of the above

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