Your company has earnings per share of $8

8. It has 1

1 million sharesoutstanding, each of which has a price of $40

40. You are thinking of buyingTargetCo, which has earnings per share of $4

4, 1

1 million sharesoutstanding, and a price per share of $25

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 buyTargetCo, what will your earnings per share be after themerger?

Your new earnings per share will be $

nothing

.

(Round to the nearestcent.)