Companies A and B have decided to merge. B will absorb A. The following are financial data of the two companies:

	Company A	Company B
assets	7.000.000$	3.300.000$
liabilities	2.500.000$	1.750.000$
clean seat	4.500.000$	1.550.000$
number of shares	220.000	45.000
nominal value of shares	15$	9$

A. Calculate the exchange ratio of the above merger. B. Will there be an increase in share capital? If so, calculate the amount. C. How much money will be paid and why?

The exercise does not give exchange terms.