A company is considering using debt to repurchase equity. You are given the following information The company's earnings before interest and taxes are $800,000, none of which . would be affected by a share repurchase. $50,000 Tax rate is 40%. The company has $1,000,000 of outstanding debt, with annual coupon payments of The company has 100,000 shares outstanding, at a market value of $40/share. If the company repurchases 30,000 shares at $45/share (financing with debt at an after-tax rate of 5%), the company's new EPS is closest to: A) 4.8 B) 4.5 C) 5.5