Both Firms Are 100% Equity-Financed

Both firms are 100% equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of the deal is $12,500. What is the cost of acquisition when stock financing is used?

A) $75,126
B) $80,000
C) $81,555
D) $82,500
E) $83,754