Harrods PLC has a market value of 122 million and 4 million shares outstanding. Selfridge Department Store has a market value of 32 million and 2 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods' CFO concludes that the combined firm with synergy will be worth 174 million, and Selfridge can be acquired at a premium of 10 million. a. If Harrods offers 1.2 million shares of its stock in exchange for the 2 million shares of Selfridge, what will the stock price of Harrods be after the acquisition? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b, What exchange ratio between the two stocks would make the value of a stock offer equivalent to a cash offer 42 million? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) Answer is complete but not entirely correct. a. New stock price Exchange ratio 29.54 0.1200 > b