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 $52.50. 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 $

(Round to the nearest cent.)