The Floral Shoppe and Maggie's Flowers Are All-Equity Firms

The Floral Shoppe and Maggie's Flowers are all-equity firms.The Floral Shoppe has 2,500 shares outstanding at a market price of $16.50 a share.Maggie's Flowers has 5,000 shares outstanding at a price of $17 a share.Maggie's Flowers is acquiring The Floral Shoppe for $42,900 in cash.The incremental value of the acquisition is $1,200.What is the net present value of acquiring The Floral Shoppe to Maggie's Flowers?

A) -$450
B) $275
C) $500
D) $2,400
E) $3,700