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. Determine the offer price at which Ivory does not experience EPS dilution after the acquisition.

$12.34

$11.34

$8.16

$7.34