This is a problem that illustrates how the differential P/E games were played during the third wave of acquisitions. Acquirer (A) acquires Target (T) by exchanging 0.4 shares of Acquirer (newly issued shares) for each share of Target and there are no synergies or added value. Acquirer (A) Target (T) Net Income A x $10 million A x $10 million Number of Shares 10 million 10 million P/E ratio 20x 5x Assume that investors expect the P/E ratio of the combined firm to remain at 20x. a. Find the Net Income, number of shares, Earnings per Share (EPS), and price per share of the combined firm. b. Find the EPS and price per share for each firm before and after the acquisition (with the values after based on a pre-acquisition share) and the percentage change in each. c. What should be the price per share and price/earnings ratio of the combined firm