Your company has earnings per share of \$4.14. It has 1.6 milion shares outstanding, each of which has a price of \$58. You are thinking of buying TargetCo, which has earnings per share of $104,1.4 million shares outstanding, and a price per share of $23. You wit pay for TargotCo by lissuing new shares. There are no expecled synergies from the transaction. a. If you pay no premium to buy TargotCo, what will your earnings per share be afler the merger? b. Suppose you offer an exchange ratio such that, at current pro-announcement share prices for both firms, the offor represents a 20% promium to buy TargotCo. What Wil your earnings per share be after the merger? c. What explains the change in earnings per share in part (a)? Are your shatoholders any better or worse off? d. What will your price-earnings ratio be affer the merger (if you pay no promium)? How does this compare to your PiE ratio bofore the merger? How does this compare to TargetCo's premerger P/E ratio