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Last year, Cayman Corporation had sales of $7,000,000, total variable costs of $3,000,000, and total fixed costs of $1,500,000. In addition, they paid $480,000 in

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Last year, Cayman Corporation had sales of $7,000,000, total variable costs of $3,000,000, and total fixed costs of $1,500,000. In addition, they paid $480,000 in interest to bondholders. Cayman has a 35% marginal tax rate. If Cayman's operating income increases 7%, what should be the increase in earnings per share? \begin{tabular}{|c|} \hline 139 \\ \hline 11.2% \\ \hline 13.3% \\ \hline 10.8% \\ \hline \end{tabular}

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