Question: Show all work: 1 . Before a potential merger, First Line Books had 2 2 5 , 0 0 0 shares outstanding at a market

Show all work:
1. Before a potential merger, First Line Books had 225,000 shares outstanding at a market price of $43.95 per share. Specialty Thrillers has 25,600 shares outstanding at $64.85 per share. Assume First Line Books has estimated the value of the synergistic benefits from acquiring Specialty Thrillers to be $83,000. Neither firm has outstanding debt. First Line Books has offered $66.80 per share to the target.
a) What is the value of the target firm to the acquirer (current market value + synergy)?(show answer to the nearest dollar)
b) What is the NPV of the proposed acquisition? (to the nearest dollar)
c) If the deal goes through, what is the price per share of the merged firm? (show as $xx.xx per share)

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