Dow shareholders will receive a fixed exchange ratio of one share of DowDuPont for each Dow share, and DuPont shareholders will receive a fixed exchange ratio of 1.282 shares in DowDuPont for each DuPont share. Dow and DuPont shareholders will each own approximately 50% of the combined company, excluding preferred shares. Common shares outstanding at Dow and DuPont at the time of the announcement were 1.160 billion and 0.876 billion, respectively. Using this information, show how the postclosing ownership distribution can be determined. How might these fixed share exchange ratios have been determined during the negotiation of the deal?