Harrods PLC has a market value of 137 million and 5 million shares outstanding. Selfridge Department Store has a market value of 39 million and 3 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrodss CFO concludes that the combined firm with synergy will be worth 191 million and Selfridge can be acquired at a premium of 10 million.

b. What exchange ratio between the two stocks would make the value of a stock offer equivalent to a cash offer of 49 million? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) Exchange ratio ________ to 1