Your company has eamings per share of \$5. It has 1 million shares cutstanding, each of which has a price of 539 , You are thinking of buying TargetCo, which has earnings of $2 per share. 1 milion shares cutstanding, and a price per share of $24 You will pay for Targetco by issuing new shares. There are no expected synergies from the fransaction Suppose you offered an exchange ratio such that, at current pre-announcement share prices for both firms. the offer represents a 15% premiun to buy TargetCo. However, the actual premum that your company will pay for TargetCo whien it completes the transaction will not be 15% because on the announcement the target price will go up and your pice will go down to reflect the fact that you are willing to pay a premium for TargetCo without any synergies. Assume that the takeover wils occur with certainty and alf market participanis know this on the announcement of the takeover (ionore time value of money). a. What is the price per strare of the combined corporation immedatey after the merger is comploted? b. What is the price of your coinpany immediately after the announcement? c. What is the price of fargetco immediately after the announcement? d. What is the actuai prernum your company will pay? 9. The price per share of the combined corporation immediately atter the merger is completed will be 4 (Round to the nearest cent.) (R)