Downing's Boats Has Agreed to Be Acquired by Schooners, Inc

Downing's Boats has agreed to be acquired by Schooners, Inc. for $325,000 worth of Schooners stock. Downing's currently has 12,500 shares of stock outstanding at a price of $23.80 a share. Schooners has 32,000 shares outstanding at a price of $46. The incremental value of the acquisition is $11,700. What is the merger premium per share?

A) $1.00
B) $1.20
C) $1.80
D) $2.20
E) $2.80