Red Co. would like to buy Blue Co. for a 30% control premium. Currently Red Co.s stock price is $28.42, its EPS is $2.48 and it has 103mm shares outstanding. Currently Blue Co.s stock price is $24.59 (before control premium), its EPS is $1.78 and it has 21.5mm shares outstanding. Red Co.s cost of debt is 5% and its tax rate is 40%. If Red Co. uses stock to acquire Blue Co. what amount of pre-tax synergies are required for Red Co. to breakeven on an EPS basis? A) $0mm B) $21.7mm C) $30.3mm D) $36.2mm