Firm B has 30 outstanding shares, trading at $20 each; firm T has 20 shares, trading at $10 each. Firm B wishes to acquire T and estimates operating synergies at 17.5% of the combined value. B's management prefers to make a cash offer If an event return below 10% is unacceptable to B's shareholders, what is the highest premium that B's management can offer?

a. 40%

b. 41.5%

c. 37.5%

d. 35%