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

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