=+P18–9 Ratio of exchange Use the information in the following table to determine the ratio of exchange (1) of shares and (2) in market price for each of the cases shown. What does each ratio signify? Explain.

Current market price per share Case Acquiring firm Target firm Price per share offered A $55 $35 $ 30.00 B 60 60 60.00 C 80 40 120.00 D 30 20 28.50 E 45 55 15.50