Question $32(1$ point$)$

Value Builders Inc. is an all equity firm that has $2,750$ shares of stock outstanding at a market price of $$26\mathrm{.}00$ a share. Company management has decided to issue $$20,000\mathrm{.}00$ worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be $6\mathrm{.}5\%.$ What are the earnings per share at the break$-$even level of earnings before interest and taxes? Ignore taxes.

a$)$ $$1\mathrm{.}13$

b$)$ $$2\mathrm{.}35$

c$)$ $$2\mathrm{.}71$

d$)$ $$1\mathrm{.}69$

e$)$ $$1\mathrm{.}87$