Blue & Co. is an all-equity firm with a total market value of $230,000. The firm has 25,000 shares of stock outstanding. Management is considering issuing $100,000 of debt at an interest rate of 7 percent and using the proceeds to repurchase shares. Management estimates that the economy will be fairly normal and thus the firm's earnings before interest and taxes (EBIT) will be $60,000. Ignore taxes. What is the anticipated earnings per share (EPS) if the debt is issued? Select one: O a. $3.20 O b. $3.54 O c. $3.75 O d. $3.82 O e. $3.46