ABC Ltd, with 80 outstanding shares, has $100 in earnings after taxes. The firm is considering an on-market buy back for 20% of the shares at the market price of $15 per share. The management has decided to use the excess cash reserves which currently earns 7.5% interest after-tax, to finance this buy-back. What is the expected EPS if this buy-back goes ahead:

Group of answer choices

$1.125

$1

$1.28

None of these

$0.969