Global Network Has a Market Value of $898,000

Multiple Choice

Global Network has a market value of $898,000.AG Communications has 50,000 shares of stock outstanding at a price per share of $60.AG is acquiring Global in an exchange for 15,000 shares of AG stock.The merger is expected to create $220,000 of synergy.What will be the post-merger value of the firm?

A) $3,218,000
B) $3,782,000
C) $4,118,000
D) $3,220,000
E) $3,898,000