Your company has earrings por share of $3.81. It has 1.2 million shares outstanding, each of which has a price of $48. You are thinking of buying TargetCo which has earnings per share of $0.95 1.8 million shares outstanding and a price per share of $22. You will pay for TargetCo by issuing new shares. There are no expochod Synergies from the transaction a. If you pay no premium to buy TargetCo, what will your earnings por share be after the merger? b. Suppose you offer an exchange ratio such that, at current pre-announcement share prices for both firms, tho offer represents a 25% premium to buy Targetco What will your camnings per share be after the merger? c. What explains the change in eamings per share in part (a)? Are your shareholders any better or worse off? d. What will your price earnings ratio be aller the merger (if you pay no premium)? How does this compare to your P/E ratio before the merger? How does this compare to TargetCo's premerger P/E ratio? C all you pay no premium to buy TargetCo, what will your earnings per share be after the merger? The EPS after the merger is (Round to the nearest cont.) b. Support you bitter an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents a 25% premium fo buy TargetCo. What will your wings per there be after the merger? The EPS aher the mergers (Round to the nearest cont.) c. Waldblurin the churigo in eumings per share in part (a)? (Select the best choice below) CAPS ay dedit the firm issues now shares to pay for a merger Time Remaining: 124 Next