Boston Lumber is unlevered with 155 shares outstanding and earnings before interest and taxes, or EBIT, of 675. Corporate earnings are taxed at a rate of 37%. Suppose that Boston Lumber makes a decision to partition its assets into debt and equity by using the newly raised debt capital to buy back a portion of the stock. The firm issues $1950 of debt at a cost of 8.85%. The partition does not change EBIT but reduces the number of shares outstanding to 80. Which of the following is Boston Lumber's EPS after the partition?

$3.96

$2.74

$8.44

$2.04