ABC Corp., an all-equity financed firm, has decided in favour of a capital restructuring. It is planning to borrow $5 million at an interest rate of 8% to repurchase some of its shares. Currently, it has 1,000,000 shares outstanding, traded at $40 per share on the market. What is ABC's leverage- indifference EPS if it has a tax rate of 30%?

Select one:

a.$2.04

b.$2.44

c.$2.24

d.$2.64