Boston Lumber is unlevered with 222 shares outstanding and earnings before interest and taxes, or EBIT, of 700. Corporate earnings are taxed at a rate of 35%. 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 $2150 of debt at a cost of 7.70%. The partition does not change EBIT but reduces the number of shares outstanding to 147. Which of the following is Boston Lumber's EPS after the partition?

$4.76

$2.36

$2.05

$1.56