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Varian Corp. wishes to acquire Tanis Corp. Varian has offered 0 . 4 5 shares of its stock plus $ 2 in cash for each

Varian Corp. wishes to acquire Tanis Corp. Varian has offered 0.45 shares of its stock plus $2 in cash
for each share of Tanis. Analysts project synergies of $30M from the combination. Varian has 3M
shares and a stock price of $20. Tanis has 2M shares and a stock price of $9. Find the expected share
price of the new firm.

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