1.The Springfield Trucking Corporation (STC) has decided in favor of a capital restructuring. Currently, STC has no debt.Following the restructuring, however, the debt will be $1,000,000.The interest rate on the debt will be 9%.STC currently has 200,000 shares outstanding with a price/share of $20.The $1,000,000 of new debt will be used to buy back company stock.If the restructuring is expected to increase EPS (earnings/share), what is the minimum level of EBIT that STC's management must be expecting?For simplicity, ignore taxes in answering.

a.$90,000

b.$200,000

c.$360,000

d.$1,250,000

e.Cannot determine with the information provided.