Smith-Miler Merger Smith Enterprises Can Acquire Miller, Inc for $250,000 in Either

Smith-Miler Merger
Smith Enterprises can acquire Miller, Inc for $250,000 in either cash or stock. Both companies are 100% equity financed. The synergy value of the acquisition for Smith is $35,000. Currently Smith has 25,000 shares outstanding which trade at $29 a share, whereas Miller has 15,000 shares outstanding that trade at $14 a share

-For Smith and Miller,what is the value of the post merger firm if cash is used?

A) $-5,000
B) $725,000
C) $720,000
D) $250,000