Crowares has 10 million shares outstanding, with a share price of $11 and earnings per share of $1.1. Crowares is considering acquiring Vineworks. Vineworks has 6 million shares outstanding, with a share price of $14 and earnings per share of $1.9. Crowares will pay for Vineworks by issuing new shares. Crowares does not expect this transaction to bring synergies. Assume Crowares pays a share price of $16.7 to buy Vineworks. The actual premium that Crowares pays will be closest to:

a.

19.29%

b.

10.60%

c.

10.09%

d.

8.35%