Cross Town Cookies is an all$-$equity firm with a total market value of $$775,000.$ The firm has $46,000$ shares of stock outstanding. Management is considering issuing $$194,000$ of debt at an interest rate of $8$ percent and using the proceeds to repurchase shares. Before the debt issue, EBIT will be $$70,400.$ What is the EPS if the debt is issued? Ignore taxes.

Multiple Choice

$$1\mathrm{.}72$

$$\mathrm{.}99$

$$1\mathrm{.}84$

$$1\mathrm{.}35$

$$1\mathrm{.}59$