Consider the following premerger information about a bidding firm $($Firm B$)$ and a target

firm $($Firm T$).$ Assume that both firms have no debt outstanding.

Firm $B$ has estimated that the value of the synergistic benefits from acquiring Firm $T$ is

$$9,600.$ Firm T can be acquired for $$20$ per share in cash or by exchange of stock

wherein B offers one of its shares for every two of T$\text{'}$s shares.

Are the shareholders of Firm T better off with the cash offer or the stock offer?

Cash offer is better

Share offer is better

At what exchange ratio of $B$ shares to $T$ shares would the shareholders in $T$ be

indifferent between the two offers? $($Do not round intermediate calculations and round

your answer to $4$ decimal places, e$.$g$.,32\mathrm{.}1616.)$