1. Earth Inc. is considering an acquisition of Mass Corp., in which Mass shareholders would receive $60.00 for each share they own. Earth intends to pay for the acquisition using its stock. Earth currently has 120 million shares outstanding, each trading at $50.00, while Mass has 25 million shares outstanding, currently valued at $45.00 per share. In the year immediately before the merger, Earths net earnings totaled $280 million, while Masss net earnings equaled $75 million. Earth estimates that Masss net earnings will increase by 5% as a result of the merger while Earths net earnings will remain the same as in the pre-merger year. What will Earths EPS be in the year immediately after the merger?

	a.	$2.33
	b.	$3.00
	c.	$2.39
	d.	$3.15
	e.	$2.37