Loki, Inc., and Thor, Inc., have entered into a stock-swap merger agreement whereby Loki will pay a

Question:

Loki, Inc., and Thor, Inc., have entered into a stock-swap merger agreement whereby Loki will pay a 40% premium over Thor’s premerger price. If Thor’s premerger price per share was $40 and Loki’s was $50, what exchange ratio will Loki need to offer?