Liverpool Inc. earned $5 million in 2010. Of this amount, the company decided that 40 percent would be used to purchase treasury stock. At present there are 500,000 shares outstanding. Market price per share is $36. The tender offers of $40 per share for the stock repurchase.

Earning per Share (EPS) before stock repurchase:

A.

$10

B.

$14

C.

$12

D.

$16