what is this

Firms A and Firm B are both all-equity firms. Firm A has 70,000 shares outstanding and the stock is trading at $30 per share. Firm B has 16,000 shares outstanding and the stock is trading at $20 per share. Firm A is considering offering $30 per share to acquire Firm B. The total value of synergy is $80,000. What would be the merger premium for shareholders of Firm B? $190,000 $240,000 $160,000 $70,000 $2,020,000