The firm Hill is planning to acquire Dale, another firm in the same industry. Relevant financial information for the two firms is shown below.

	Hill	Dale
Price per Share $	4.5	1.9
Number of Shares	28,000,000	10,500,000
Dividend Payout Ratio	0.65	0.20

Both firms are financed entirely by equity. The acquisition will result in expected cost savings for the merged (post-acquisition) firm with a total present value of $38 million.

Assume for this part of the question that Hills shares are valued at $4.50 each. How many new shares would Hill issue to Dale's shareholders in exchange for the whole 10.5 million of Dale's shares? What is the total value and price per share of the merged firm? Should Hill pay for the acquisition on this basis? Explain briefly.