Simone's Sweets is an all-equity firm that has 10,300 shares of stock outstanding at a market price of $24 per share. The firm's management has decided to issue $104,000 worth of debt at an interest rate of 6 percent. The funds will be used to repurchase shares of the outstanding stock. What are the earnings per share at the break-even EBIT?

Multiple Choice

$2.69

$1.44

$2.49

$3.42

$1.73