Consider two firms, Black Corporation and White Corporation. The board of directors of Black corporation has announced its plan to acquire White corporation. The share price for Black is trading at RM25 per share and White is trading for RM29 per share, with a premerger value for White of RM1 billion dollars. If the projected synergies from the merger are RM500 million, what is the maximum exchange ratio that Black could offer in a stock swap and still generate a positive NPV? Is it wise for Black to offer less or more than the computed exchange ratio? Explain.