Part 1 of 4 Pointe: 0 of 8 Save Your company has camins per share of 85. It has 1 milion shares outstanding, each of which has a price of $40. You are thinking of buying Toronto, which has earnings of 51 per share, 1 milion shares outstanding, and a proper share of $30. You will pay for TargetCo by issuing new share. There are no expected synergies from the transaction Suppose you offered an exchange ratio such that at current pre-announcement share pnces for both the offer represents 19% premium to buy TargetCo. However, the actual premium that your company will pay for Target when it complete the transaction will not be 19%, because on the ancement the agence will go up and your price will go down to reflect the fact that you are willing to pay a premium for TargetCo without any wynergie Anathe keer wil with certainty and market participants now on the wouncement of the ever ignore me value of money) a. What the price per share of the combined corporation immediately after the merger is completed? b. What is the price of your company immediately wher the announcement? What is the price of Torgelo immediately after the announcement? d. What is the actual premium your company will pay