9.5.

(a) VG+S = [(1.2)(6) + (0.6)(2)](1 + g)/(k − g) = $88.2 million for g = 5% and k = 15%.

(b) Exchange ratio = 0.6/1 or 2 × 0.6 = 1.2 m shares issued.

P = Price paid for SS = [1.2/(6 + 1.2)]VG+S = $14.7 million GLS stock-holders’ gain = VG+S − VG − P = 88.2 − 60 − 14.7 = $13.5 million SS stock-holders’ gain = P − VS = 14.7 − 10 = 4.7 million Value created = $18.2 million