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 stock price of the new firm after a cash acquisition?

A) $29
B) $28.80
C) $18
D) $21.50