Acquisition by Exchanging Stock. Company R wishes to acquire company S. Company R’s stock sells for $100 per share. Company S’s stock sells for $40 a share. Due to merger negotiations, company R...

Acquisition by Exchanging Stock. Company R wishes to acquire company S. Company R’s stock sells for $100 per share. Company S’s stock sells for $40 a share. Due to merger negotiations, company R offers $50 a share. The acquisition is done through an exchange of securities. What is the ratio of exchange?