MTN is considering the acquisition of a small telecommunications company Android, using common stock. The following essential information on the two companies is provided. MTN Android Present Earnings 4 000 000 1 000 000 Common Stock Outstanding 2 000 000 800 000 Earnings Per Share 2 1.25 Price/Earnings Ratio 12 8 MTN plans to offer a premium of 20% over the market price of Android stock. 2.1 What is the exchange ratio of the stocks? (5) 2.2 How many new shares should MTN issue to acquire Android? (5) 2.3 What is the earnings per share for the surviving company immediately after the merger? (5) 2.4 Advise Android's board of directors on anti-takeover strategies it can implement to frustrate MTN out of its plans