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.

$\backslash$table$[[,$Firm B$,$Firm T$],[$Shares outstanding,,$500,,500],[$Price per share,$$,54,$$$,24]]$

Firm $B$ has estimated that the value of the synergistic benefits from acquiring Firm $T$ is $$8,000.$ Firm T can be acquired for $$26$ 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$.,32\mathrm{.}1616.)$

Exchange ratio

to $1$