Stock & Cash$-$for$-$Stock Offer

Reconsider the potential acquisition described in the problem above. Again, Dubon

has $4,750,000$ shares outstanding that are currently selling for $$47\mathrm{.}85,$ and they are

considering the purchase of the Wells Co$.$ that has $2,350,000$ shares outstanding that

are selling at $$35\mathrm{.}65.$ Suppose that Dubon has a horde of $$35,250,000$ in cash that

they can use in the acquisition, and they are considering a stock & cash for stock

acquisition of Wells. That implies that Dubon can offer each shareholder of Wells $$15$ in

cash and the remainder in Dubon stock. Assuming the share prices will hold at their

current levels, what portion of the new firm will the Wells stockholders own after the

transaction? $($The answer is a percentage, round to two decimal places, e$.$g$.42\mathrm{.}75)$

Numeric Response