Low's Has 12,000 Shares of Stock Outstanding at a Price

Multiple Choice

Low's has 12,000 shares of stock outstanding at a price per share of $16.40.Bert's has 21,000 shares outstanding at a price per share of $26.50.Bert's believes it can create $41,000 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) $794,300
B) $597,500
C) $753,300
D) $400,700
E) $636,800