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An acquirer has an issued capital of 300m shares trading at $6.23. A target company has an issued capital of 500m shares trading at $2.89.

An acquirer has an issued capital of 300m shares trading at $6.23. A target company has an issued capital of 500m shares trading at $2.89. The acquirer expects synergies from an acquisition with a present value of $200m. What is the maximum exchange ratio (to two decimal places) that could be offered in a stock swap and still generate a positive-NPV for the acquirer?

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