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Your company has eamings per share of $6. It has 1 million shares outstanding, each of which has a price of $24. You are thinking

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Your company has eamings per share of $6. It has 1 million shares outstanding, each of which has a price of $24. You are thinking of buying TargetCo, which has earnings per share of $3,1 million shares outstanding, and a price per share of \$18. 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 eamings per share will be \& (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 reprosonts a 20% premium to buy TargetCo. What will your eamings per share be after the merger? Your new earnings per share will be? (Round to the nearest oent)

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