Solis has earnings per share of $2.20. It has 10 million shares outstanding and is trading at $25 per share. Solis is thinking of buying Universal, which has earnings per share of $1.40, 4 million shares outstanding, and a price per share of $18. Solis will pay for Universal by issuing new shares. There are no expected synergies from the transaction. If Solis offers an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents a 20% premium to buy Universal, then what should be the price per share of the combined corporation after the merger?

$23.93

$24.42

$24.91

$25.40

$25.89