Company A has agreed to buy Company B for $55.00/share in stock. Company A and Company Bs stock prices on the day before announcement were $112.00 and $42.00 respectively. Company B has 200,000 shares outstanding, 120,000 exercisable options outstanding with an average exercise price of $28.00 per share, $1.2 million in net debt to be assumed by Company A and minority interests of $250,000 to be acquired for cash.

What is the implied exchange ratio?

Group of answer choices

B shareholders get 1.24 A shares

B shareholders get 0.75 A shares

B shareholders get 0.49 A shares

B shareholders get 0.62 A shares