Harrods PLC has a market value of 124 million and 6 million shares outstanding. Selfridge Department Store has a market value of 34 million and 3 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods' CFO concludes that the combined firm with synergy will be worth 173 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 3 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 44 million? (Do not round Intermediate calculations and round your answer to 4 decimal places, e.g., 1616.) Answer is complete but not entirely correct. a. New stock price Exchange ratio 24.03 2.0465 b