Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock plus $120, which equals one-half of the synergy, in shares of Firm A. Firm A currently has 4,000 shares of stock outstanding at a market price of $21 a share. Firm B has 1,200 shares outstanding at a price of $10 a share. What is the value of the merged firm?
A) $88,120
B) $96,240
C) $96,000
D) $84,120
E) $92,360
B) $96,240
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