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.

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 Shares outstanding Price per share Firm B Firm T 6,400 2,300 $ 48 20 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,800. Firm T carn be acquired for $22 per share in cash or by exchange of stock wherein B offers one of its share for every two of T's shares. Are the shareholders of Firm T better off with the cash offer or the stock offer? Share offer is better Cash 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., 32.1616.) Exchange ratio