Firm B Is Willing to Be Acquired by Firm a at a Price

Multiple Choice

Firm B is willing to be acquired by firm A at a price of $34 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $80,000. What is the NPV of acquiring firm B if the merger is an all cash deal?

A) $36,000
B) $44,000
C) $80,000
D) $116,000
E) $128,000