Harrods PLC has a market value of £121 million and 5 million shares outstanding. Selfridge Department...

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Harrods PLC has a market value of £121 million and 5 millionshares outstanding. Selfridge Department Store has a market valueof £31 million and 2 million shares outstanding. Harrods iscontemplating acquiring Selfridge. Harrods' CFO concludes that thecombined firm with synergy will be worth £167 million, andSelfridge can be acquired at a premium of £10 million. a. IfHarrods offers 1.2 million shares of its stock in exchange for the2 million shares of Selfridge,
a. what will the stock price of Harrods be after theacquisition? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)
b, What exchange ratio between the two stocks would make thevalue of a stock offer equivalent to a cash offer £41 million? (Donot round intermediate calculations and round your answer to 4decimal places, e.g., .1616.)

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Harrods PLC has a market value of £121 million and 5 millionshares outstanding. Selfridge Department Store has a market valueof £31 million and 2 million shares outstanding. Harrods iscontemplating acquiring Selfridge. Harrods' CFO concludes that thecombined firm with synergy will be worth £167 million, andSelfridge can be acquired at a premium of £10 million. a. IfHarrods offers 1.2 million shares of its stock in exchange for the2 million shares of Selfridge,a. what will the stock price of Harrods be after theacquisition? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)b, What exchange ratio between the two stocks would make thevalue of a stock offer equivalent to a cash offer £41 million? (Donot round intermediate calculations and round your answer to 4decimal places, e.g., .1616.)