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15. Merger NPV,,Harrods PLC has a market value of £500 million and 30 million shares outstanding. Selfridge Department Store has market value £180 million and 20 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods CFO concludes that the combined firm with synergy will be worth £720 million, and Selfridge can be acquired at a premium of £25 million. ,,a) If Harrods offers 12 million shares of stock in exchange for the 20 million shares of Selfridge, what will the stock price of Harrods be after the acquisition? ,b) What exchange ratio between the two stocks would make the value of stock offer equivalent to a cash offer of £205 million?,

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