Lumber is unlevered with 305 shares outstanding and earnings before interest and taxes, or EBIT, of 750. Corporate earnings are taxed at a rate of 34%. Suppose that Lumber makes a decision to partition its assets into debt and equity by using the newly raised debt capital to buy back a portion of the stock. The firm issues $2250 of debt at a cost of 8.65%. The partition does not change EBIT but reduces the number of shares outstanding to 230. Which of the following is Lumber's EPS after the partition?

1.62

1.20

1.59

3.26