Velcro saddles is contemplating the acquisition of pogo ski sticks, inc. the values

Velcro saddles is contemplating the acquisition of pogo ski sticks, inc. the values of the two companies as separate entities are $20 million and $10 million, respectively. velcro saddles estimates that by combining the two companies, it will reduce marketing and administrative costs by $500,000 per year in perpetuity. velcro saddles can either pay $14 million cash for pogo or offer pogo a 50% holding in the combined company. the opportunity cost of capital is 10%. a. What is the value of the stock in the merged company held by the original Pogo shareholders? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.)
Value of the stock $ million
b. What is the cost of the stock alternative? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.)
Cost of the stock $ million
c. What is its NPV under the stock offer? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.)
NPV $ million