Al's Market Has a Market Value of $418,900

Multiple Choice

Al's Market has a market value of $418,900.Liza's has a market value of $724,500.Liza's believes it can create $46,000 of synergy if it acquires Al's for $425,000 in cash.What is the value of the firm following the merger? Assume both firms are all-equity financed.

A) $764,400
B) $1,098,900
C) $1,189,400
D) $718,400
E) $968,900