Answer Happy

Consider the following premerger information about a biddingfirm (Firm B) and a target firm (Firm T). Assume that both firmshave no debt outstanding. Firm B Firm T Shares outstanding 6,6002,500 Price per share $ 47 $ 21 Firm B has estimated that the valueof the synergistic benefits from acquiring Firm T is $9,900. a. IfFirm T is willing to be acquired for $23 per share in cash, what isthe NPV of the merger? (Do not round intermediate calculations.) b.What will the price per share of the merged firm be assuming theconditions in (a)? (Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.) c. If Firm Tis willing to be acquired for $23 per share in cash, what is themerger premium? (Do not round intermediate calculations.) d.Suppose Firm T is agreeable to a merger by an exchange of stock. IfB offers one of its shares for every two of T's shares, what willthe price per share of the merged firm be? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.) e. What is the NPV of the merger assuming theconditions in (d)?