Lollipop Corporation is a start-up firm with a capital structure that includes 25 percent debt. Lollipop has no preferred stock. The firm has two possible scenarios for its operations: Green or Blue. The Green scenario has a 70 percent probability of occurring and the forecast earnings before interest and taxes (EBIT) in this scenario is $80,000. The Blue scenario has a 30 percent chance of occurring and the EBIT is expected to be $32,000. Further, the firm's cost of debt is 10 percent. The firm has $500,000 in total assets and its marginal tax rate is 30 percent. The company has 22,000 shares of common stock outstanding. Calculate the difference in earnings per share (EPS) for the capital structure $1.53 $1.48 $1.20 $2.24