1. Lightning corporation (LNT) announced plans to acquire the Elektron corporation (ELK). LNTs stock is trading at $40 per share, while ELKs stock is trading at $20 per share, implying a pre-merger value for ELK of $4 billion. If the projected synergies S for LNTs acquisition of ELK amount to $8 billion, what is the maximum exchange ratio x (in terms of shares of LNT for shares of ELK) that LNT would offer in a stock swap and still generate a positive NPV?

   	a.	1.50
   	b.	1.00
   	c.	0.75
   	d.	0.25