What is the amount of earnings accretion/(dilution) per share in year 1, given the information below?

Details:

• Acquirors pre-deal EBIT is $100 million
• Targets pre-deal EBIT is $50 Million
• Estimated synergies are $10 million
• The acquiror presently has no debt on its balance sheet
• The transaction is not expected to produce any additional goodwill
• Incremental debt used to fund the transaction is $350 million at an interest rate of 4.0%
• The Acquirors tax rate is 25%
• The Acquirors common shares outstanding before and after the transaction are 100 million

A. $0.35 per share

B. $0.70 per share

C. $1.10 per share

D. $(1.85) per share