Ivory has $25 million in after-tax earnings and 6 million shares outstanding each priced at $34. Ivory is considering acquiring Red Ink. Red Ink has $4 million in after-tax earnings and 4 million shares outstanding each priced at $14. Ivory believes that the acquisition will yield $2 million in immediate synergistic earnings. Ivory is planning to bid with an offer price of $17.

1. Determine EPS for the combined company.

A. $3.87

B. $3.47

C. $3.27

D. $3.07