Bega Cheese Ltd. has earnings per share of $3.5. It has 15 million shares outstanding and its stock is trading at $18 per share. Bega is thinking of buying Boral Ltd., which has earnings per share of $0.75, 6 million shares outstanding, and a price per share of $12. Bega will pay for Boral by issuing new shares. There are no expected synergies from the transaction.

If Bega offers an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents a 30% premium to buy Boral, then Bega's earnings per share after the merger will be closest to:

	0.58
	1.12
	2.82
	7.19
	None of the above