Barlow Manufacturing Has Announced Plans to Acquire Hull Enterprises

Multiple Choice

Barlow Manufacturing has announced plans to acquire Hull Enterprises.Barlow is trading for $19.25 per share and has a premerger value of $3 billion,while Hull is trading for $41.35 per share and has a premerger value of $950 million dollars.If the projected synergies from the merger are $425 million,what is the maximum exchange ratio that Barlow could offer in a stock swap and still generate a positive NPV?

A) 2.379
B) 0.531
C) 3.109
D) 2.452
E) 0.674