XYZ Inc., and Thor, Inc. have entered into a stock swap merger agreement whereby XYZ will pay a 20% premium over Thor's premerger price. The total synergy of the merger is estimated to be $3m. The table below contains necessary information to perform an NPV analysis for the merger.

	XYZ	Thor
pre-merger share price	$20	$10
number of shares	2m	0.5m

Requirements:

(a) Calculate the number of shares XYZ will issue to exchange the shares of Thor.

(b) If XYZ instead proposes a cash offer. Calculate the offer price that will split the synergy equally between the two companies.