Hi, I need help with the question below. Thanks, I appreciate your help.

A small public traded company list in the venture exchange has total outstanding common shares of 170,000. The new CEO, is planning to modify the companys capital structure to include debt offering. If the plan goes ahead, the company will retire 80,000 common shares and its proposed interest cost would be $100,000.

What will be the indifference Earnings before interest and taxes based on such information?

A. $250,000

B. $237,500

C. $225,000

D. $212,500

E. $200,000