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Harrods PLC has a market value of 134 million and 4 million shares outstanding Selfridge Department Store has a market value of 36 million and

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Harrods PLC has a market value of 134 million and 4 million shares outstanding Selfridge Department Store has a market value of 36 million and 2 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods' CFO concludes that the combined firm with synergy will be worth 185 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 46 million? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) a. New stock price b. Exchange ratio

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