7. Impac Company is currently an all equity firm with a total market value of $16,500,000 with 1,200,000 shares of stock outstanding. The firm has expected EBIT of $1,360,000 if the economy is normal and $1,870,000 if the economy booms. The firm is considering a $4,500,000 bond issue with an attached interest rate of 6 percent. The bond proceeds will be used to repurchase shares. Ignore taxes. What will the earnings per share be after the repurchase if the economy is normal?

	a	$1.69
	b	$1.58
	c	$1.47
	d	$1.36
	e	$1.25