At the beginning of the year Fair store management is considering making an offer to buy thrify Corporation. Fair stores projected operating income (EBIT) for the current year is $31.0 million, but it believes that if the two firms were merged, it could consolidate some operations, reduce thrify's expenses, and raise its EBIT to $34.0 million. Neither company uses any debt, and they both pay income taxes at a 25% rate. Fair store has a better reputation among investors, who regard it as very well managed and not very risky, so its stock has a P/E ratio of 11 versus a P/E of 9 for thrify store. Since Fair store's management would be running the entire enterprise after a merger, investors would value the resulting corporation based on Fair stores P/E. If thrify has 10 million shares outstanding, by how much should the merger increase its share price, assuming all of the synergy will go to its stockholders? Do not round your intermediate calculations. a. $5.34 b. $8.91 c. $6.06 d. $7.48 e. $7.13