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Harrods PLC has a market value of 135 million and 5 million shares outstanding. Selfridge Department Store has a market value of 37 million and

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Harrods PLC has a market value of 135 million and 5 million shares outstanding. Selfridge Department Store has a market value of 37 million and 3 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods's CFO concludes that the combined firm with synergy will be worth 192 million and Selfridge can be acquired at a premium of 10 million. If Harrods offers 1.5 million shares of its stock in exchange for the 3 million shares of a. 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.) What exchange ratio between the two stocks would make the value of a stock offer b. equivalent to a cash offer of 47 million? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) a E New stock price b. Exchange ratio 29.54 to 1

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