A Ltd has an expected earnings per share of $$2$ for the next year. It has $10$ million shares outstanding and is trading at $$20$ per share. A Ltd is thinking of buying B Ltd which has an expected earnings per share of $$1$ for the next year, $2$ million shares outstanding, and a price per share of $$40.$

A Ltd will pay B Ltd by issuing new shares

There are no expected synergies from the transaction. Assume zero transaction cost and zero integration cost.

Suppose A Ltd ffers an exchange ratio such that, at current pre$-$announcement share prices for both firms, the offer represents a $25\%$ premium to buy B Ltd

Use this info to answer the following question:

a$)$ A Ltd expected earnings er share for the next year after the merger is $\_\_\_\_\_$

b$)$ The share price of B Ltd immediately after the annoucement is $$\_\_\_\_\_$

c$)$ The actula premium paid by A Ltd for this acquisition is $\_\_\_\_\_\%$

please put answer up to two decimal points e$.$g$.,$ xx$.$xx