Stark Unlimited is an all-equity firm that has 7,600 shares of stock outstanding at a market price of $22 per share. The firm's management has decided to issue $68,000 worth of debt at an interest rate of 9 percent. The funds will be used to repurchase shares of the outstanding stock. What are the earnings per share at the break-even EBIT?

$1.98

$4.87

$3.34

$3.62

$2.38