Sol Company has announced plans to acquire Luna Corporation at a premium of 20% over the pre-announcement share price. Sol is trading for $42 per share, and has a premerger value of $14 billion. Prior to the announcement, Luna was trading for $71 per share, and currently has 106 million shares outstanding. The projected synergies from the merger are $1.5 billion. What is the maximum exchange ratio that Sol could offer in a stock swap transaction and still generate a positive NPV?

2.43

2.37

1.97

2.03