Firm X Is Planning on Merging with Firm Y

Firm X is planning on merging with Firm Y. Firm X will pay Firm Y's stockholders the current value of their stock in shares of Firm X. Firm X currently has 3,900 shares of stock outstanding at a market
Price of $40 a share. Firm Y has 2,200 shares outstanding at a price of $17 a share. The after-
Merger earnings will be $7,800. What will the earnings per share be after the merger?

A) $1.61
B) $1.67
C) $1.75
D) $1.81
E) $1.86