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%. What is the maximum price Red Co. can pay before the deal becomes dilutive if it acquires Blue Co. with debt? A) $35.60 B) $47.36 C) $59.33 D) $87.07