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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

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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 $25. 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 earings per share be after the merger? Your new earnings per share will be $ (Round to the nearest cent.)

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