PLEASE ANSWER PART B)

Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You are thinking of buying TargetCo, which has earnings per share of $2,1 million shares outstanding, and a price per share of $30. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. Complete parts a through d below. a. If you pay no premium to buy TargetCo, what will your earnings per share be after the merger? Your new earnings per share will be $ 3.42. (Round to the nearest cent.) b. Suppose you offer an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents a 25% premium to buy TargetCo. What will your earnings per share be after the merger? Your new earnings per share will be $0