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Harrods PLC has a market value of 129 million and 5 million shares outstanding. Selfridge Department Store has a market value of 39 million and

Harrods PLC has a market value of 129 million and 5 million shares outstanding. Selfridge Department Store has a market value of 39 million and 2 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods's CFO concludes that the combined firm with synergy will be worth 183 million and Selfridge can be acquired at a premium of 10 million.

What exchange ratio between the two stocks would make the value of a stock offer equivalent to a cash offer of 49 million?

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