(b) Lambda plc is acquiring the shares of Mu plc. The consideration will be in the form of new shares issued by Lambda plc. The following information is provided: Last reported annual earnings Number of 1 ordinary shares in issue Current share price Lambda plc 10m 50m 160 pence Mu plc 2m 20m 40 pence What is the exchange ratio and who would gain, and by how much, if Lambda plc offered to acquire Mu plc shares a value of 60p each (i.e., including a premium of 20p each)? [8 marks]