Capitol Stores and the Back Corner Are All-Equity Firms

Capitol Stores and The Back Corner are all-equity firms. Capitol Stores has 1,750 shares outstanding at a market price of $18.40 a share. The Back Corner has 2,100 shares outstanding at a price of $34 a share. The Back Corner is acquiring Capitol Stores for $34,900 in cash. What is the merger premium per share?

A) $0.46
B) $0.89
C) $1.54
D) $1.65
E) $2.00