Consider the following pre-merger information about a bidding firm (firm B) and a target firm (firm 7). Assume that both firms have no debt outstanding: Shares outstanding Price per share Firm B Firm T 2,900 1,400 $39 $26 Firm B has estimated that the value of the synergistic benefits from acquiring firm T is $5,500. Firm B gives two offers to Firm T. First, Firm B offers $29 per share in cash. Second, it offers three of its shares for every five of T s shares. a. Are the shareholders of firm T better off with the cash offer or the stock offer? b. At what exchange ratio of B shares to T shares would the shareholders in T be indifferent between the two offers