Answer:
The answer is "Share offer is better".
Explanation:
Firstly Computing the value of the combined company:
The merger value = the market value of the B company + the market value of the T + synergically advantages
= shares issued * share price of company B + outstanding shares * price per share of company T + benefits for synergies
Number of new shares which have been created following the merger = the number of shares in the T *exchange ratio
The percentage price of the fusion company = the value of the fusion company /the share value of the fusion company
The per-share price of the combined company
The cash offer value = 16 dollars per share
Stock offer value = price of merged company share /2
Thus, share offer is better