Simone's Sweets is an all-equity firm that has 8,200 shares of stock outstanding at a market price of $25 per share. The firm's management has decided to issue $76,000 worth of debt at an interest rate of 7 percent. The funds will be used to repurchase shares of the outstanding stock. What are the earnings per share at the break-even EBIT?

• $2.78

• $1.75

• $4.72

• $3.01

• $2.10