Exchange Ratio. The following information is provided:
|
Case
|
Market Price per Share
of Acquiring Company
|
Market Price per Share
of Acquired Company
|
Price per Share
Offered
|
|
1
|
$80
|
$40
|
$50
|
|
2
|
$120
|
$160
|
$180
|
For each case, determine (a) the exchange ratio in shares, and (b) the exchange ratio in market price.