Delta is planning on merging with Bravo. Delta will pay Bravo´s shareholders the current value of their equity in shares of Delta. Delta currently has 5,000 shares of equity outstanding at a market price of €40 a share. Bravo has 2,000 shares outstanding at a price of €20 a share. The after-merger earnings will be €10,500. What will the earnings per share be after the merger?
a. €1.61.
b. €1.65.
c. €1.75.
d. €1.81.
e. €1.86.