Velcro Saddles is contemplating the acquisition of Skiers' Airbags Inc. The values of the two companies as separate entities are $24 million and $12 million, respectively. Velcro Saddles estimates that by combining the two companies, it will reduce marketing and administrative costs by $520,000 per year in perpetuity. Velcro Saddles considers offering Skiers' shareholders a 50% holding in Velcro Saddles. The opportunity cost of capital is 8%. a. What is the value of the stock in the merged company held by the original Skiers' shareholders? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete and correct. Value of the stock $ 21.25 million b. What is the cost of the stock alternative? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete and correct. Cost of the stock $ 9.25 million c. What is the merger's NPV under the stock offer? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) NPV million