Boston Lumber is unlevered with 305 shares outstanding and earnings before interest and taxes, or EBIT, of 625. Corporate earnings are taxed at a rate of 38%. 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 $1850 of debt at a cost of 8.85%. The partition does not change EBIT but reduces the number of shares outstanding to 230. Which of the following is Boston Lumber's EPS after the partition?

		$0.94
		$2.72
		$1.24
		$1.27