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56. Please help Harrods PLC has a market value of 160 million and 9 million shares outstanding. Selfridge Department Store has a market value of

56. Please help image text in transcribed
Harrods PLC has a market value of 160 million and 9 million shares outstanding. Selfridge Department Store has a market value of 73 million and 10 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods' CFO concludes that the combined firm with synergy will be worth 316 million, and Selfridge can be acquired at a premium of 25 million. If Harrods offers 13 million shares of its stock in exchange for the 10 million shares of Selfridge, what will the stock price of Harrods be after the acquisition? What exchange ratio between the two stocks would make the value of a stock offer equivalent to a cash offer of 90 million

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