Velcro Saddles is contemplating the acquisition of Skiers Airbags Inc. The values of the two companies as separate entities are $22 million and $11 million, respectively. Velcro Saddles estimates that by combining the two companies, it will reduce marketing and administrative costs by $510,000 per year in perpetuity. Velcro Saddles considers offering Skiers shareholders a 50% holding in Velcro Saddles. The opportunity cost of capital is 10%. 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.)