Adams is an all-equity firm with a total market value of $715,000, with 46,000 shares of stock outstanding. Management is considering issuing $158,000 of debt at an interest rate of 8 percent and using the proceeds to repurchase shares. If EBIT is $63,200, what will be the EPS when the debt is issued? Ignore taxes.

$1.10

$1.41

$1.76