Michaels is a levered firm with $55,000 of debt. Michaels pays tax at the rate of 30%. The firm faces EBIT scenarios of recession, normal, and boom. {Note: EBIT = earnings before interest and tax, $ Interest = dollar amount of interest owed on the debt, NIBT = net income before tax, NI = net income, EPS = earnings per share}. Assume that firms with zero or negative NIBT pay zero in tax. ..EBIT..$ INTEREST.. NIBTTAXES NI.EPS ----------------------------------------------------------------------------------- BOOM .$9,000.$4,400 NORMAL....... $1,137 RECESSION.$2,000..........-$6.00 What amount comes closest to Michaels EPS in the BOOM scenario?

	a.	$2.44
	b.	$4.11
	c.	$0.57
	d.	$5.32
	e.	$8.05