Blenheim PLC has a market value of $123 million and 5 million shares outstanding. Howard Department Store has a market value of $30 million and 2 million shares outstanding. Blenheim is contemplating acquiring Howard. Blenheim's CFO concludes that the combined firm with synergy will be worth $176 million, and Howard can be acquired at a premium of $10 million.

a.If Blenheim offers 1.2 million shares of its stock in exchange for the 2 million shares of Howard, what will the stock price ofBlenheim be after the acquisition?(Round the final answer to 2 decimal places.Omit $ sign in your response.)

New stock price per share$

b.What exchange ratio between the two stocks would make the value of a stock offer equivalent to a cash offer of $40 million?(Do not round intermediate calculations. Round the final answer to 4 decimal places.)

Exchange ratio