Lotus Inc. is a publicly traded company with 50 million shares outstanding. Its current share price is $16.4 per share. The company also has $200 million debt with 3% interest rate charged by the lender. The management is considering two financing alternatives to raise $100 million from capital markets for the development of a new drug. Under Option A, they will sell new shares at the current stock price; under Option B, they will borrow at the current cost of debt. The company's marginal tax rate is 40%.

What is the EBIT-EPS indifference level?

Answer rounding to the nearest cent. Do not include any symbols, such dollar sign ($), percentage sign (%), or thousand separators (,). For example, if the answer is 12.3456, enter 12.35.

Also,

If the management expects an EBIT of $40, which option should they select to maximize EPS? (Choose Option A or B).