Green Ltd has earnings per share of 2 dollars. It has 13000 shares outstanding and is trading at 20 dollars per share. Green is thinking of buying Brown Corporation. Brown Corporation has earnings per share of 1.25 dollars, 4800 shares outstanding, and a price per share of 15 dollars. Green will pay for Brown by issuing new shares. Assume there are no expected synergies from the transaction.

(a): If Green pays no premium to buy Brown, how many new shares will Green Ltd have to issue to fund the deal?

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(b): If Green pays no premium to buy Brown, what are Greens earnings per share after the deal? (Round your final answer to 2 decimal places if needed)

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(c): If Green offers an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents a 20% premium to buy Brown, what are Greens earnings per share after the deal? (Round your final answer to 2 decimal places if needed)

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(d): Which payment method in a merger and acquisition deal is more beneficial to target firm shareholders? Explain your answer.