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 1700 shares outstanding with a price of $31 per share.

Firm T has 1000 shares outstanding with a price of $21 per share.

Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $3,300. Firm T is willing to be acquired for $27 per share in cash.

Required:

(a)

Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers 3 of its shares for every 4 of T's shares, the value of the share offer is $ (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)). Therefore, the shareholders of Firm T are better off with the (Click to select)share offercash offer.

(b)	At an exchange ratio of B shares to T shares, the shareholders in T would be indifferent between the two offers. (Round your answer to 4 decimal places. (e.g., 32.1616))