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 debt to acquire Blue Co. what would Red Co.s proforma EPS be? A) $2.48 B) $2.52 C) $2.65 D) $3.78