Your company has earnings per share of

$4.

It has

1

million shares outstanding, each of which has a price of

$60.

You are thinking of buying TargetCo, which has earnings per share of

$2,

1

million shares outstanding, and a price per share of

$37.50.

You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. Complete parts a through d below.