ABC has 1.00 million shares outstanding, each of which has a price of $19. It has made a takeover offer of XYZ? Corporation, which has 1.00 million shares outstanding, and a price per share of $2.67. Assume that the takeover will occur with certainty and all market participants know this.? Furthermore, there are no synergies to merging the two firms.

a. After ABC makes a cash offer to purchase XYZ for $3.03?million, the price of XYZ is ? $______ per share.? (Round to the nearest? cent.)

b.Assume ABC makes a stock offer with an exchange ratio of 0.15. the price of XYZ is ? $______ per share. ? (Round to the nearest? cent.)

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c. At current market prices, both offers are offers to purchase XYZ for $3.03 million. Does that mean that your answers to parts?(a?) and ?(b?) must be identical? Explain.

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