Question 2 Happy company has a market value of $310 million and 11 million shares outstanding. Sad company has a market value of $121 million and 6 million shares outstanding. Happy is contemplating acquiring Sad. Happy's CFO concludes that the combined firm with synergy will be worth $475 million, and Sad can be acquired at a premium of $13 million. a. If Happy offers 8.5 million shares of its stock in exchange for the 6 million shares of Sad, what will the stock price of Happy be after the acquisition? b. What exchange ratio between the two stocks would make the value of the stock offer equivalent to a cash offer of $134 million?