Fashion Acquisitions. During the 1960s, many conglomerates were created by firms that were enjoying a high price/earnings ratio (P/E). These firms then used their highly valued stock to acquire other firms that had lower P/E ratios, usually in unrelated domestic industries. Conglomerates went out of fashion during the 1980s when they lost their high P/E ratios, thus making it more difficult to find other firms with lower P/E ratios to ac quire During the 1990s, the same acquisition strategy was possible for firms located in countries where high P/E ratios were common compared to firms in other countries where low P/E ratios were common. Consider the hypothetical firms in the pharmaceutical industry shown in the table below. (Click on the icon to import the table into a spreadsheet.) Modern American wants to acquire ModoUnico. It offers 5,500,000 shares of Modern American, with a current market value of $220.000.000 and a 10% premium on ModoUnico's shares, for all of ModoUnico's shares Number of shares 10,000,000 10,000,000 Market value per share $22.00 $44.00 Total Market Value $220,000,000 $440,000,000 P/E ratio Company ModoUnico Modern American Earnings $10,000,000 $10,000,000 EPS $1.00 $1.00 a. How many shares would Modern American have outstanding after the acquisition of ModoUnico? The new number of shares would be .(Round to the nearest integer.) b. What would be the consolidated earnings of the combined Modern American and ModoUnico? The consolidated earnings would be SRound to the nearest dollar.) c. Assuming the market continues to capitalize Modern Americ an's earnings at a P/E ratio of 44, what would be the new market value of Modern American? The new value of Modern American would be $. (Round to the nearest dollar.) Enter vour answer in each of the answer boxes