ABC has $1\mathrm{.}00$ million shares$$ outstanding, each of which has a price of $ $19.$ It has made a takeover offer of XYZ$$ Corporation, which has $1\mathrm{.}00$ million shares$$ outstanding, and a price per share of $ $2\mathrm{.}28.$ Assume that the takeover will occur with certainty and all market participants know this.$$ Furthermore, there are no synergies to merging the two firms.

a$.$ Assume ABC made a cash offer to purchase XYZ for $ $3\mathrm{.}89$ million. What happens to the price of ABC and XYZ on the$$ announcement? What premium over the current market price does this offer$$ represent?

b$.$ Assume ABC makes a stock offer with an exchange ratio of $0\mathrm{.}13.$ What happens to the price of ABC and XYZ this$$ time? What premium over the current market price does this offer$$ represent?

c$.$ At current market$$ prices, both offers are offers to purchase XYZ for $ $3\mathrm{.}89$ million. Does that mean that your answers to parts $($a$)$ and $($b$)$ must be$$ identical? Explain.

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Part $1$

a$.$ After ABC makes a cash offer to purchase XYZ for $ $3\mathrm{.}89$million$,$ the price of XYZ is $$$

$$

enter your response here per share. $($Round to the nearest$$ cent.$)$