Low's Has 17,500 Shares of Stock Outstanding at a Price

Multiple Choice

Low's has 17,500 shares of stock outstanding at a price per share of $37.40.Bert's has 25,000 shares outstanding at a price per share of $41.50.Bert's believes it can create $12,800 of synergy if it acquires Low's in an exchange of stock.What is the value of the combined firm following the merger? Assume both firms are all-equity financed.

A) $1,704,800
B) $1,597,500
C) $1,753,300
D) $1,692,000
E) $1,679,200