Summer Tan, Inc., is an all-equity firm with a total market value of $685,000 and 44,900 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $91,800 if the economy is normal. If there is a recession, EBIT will be 10 percent lower, and if there is a boom, EBIT will be 20 percent higher. The tax rate is 40 percent. What is the EPS in a boom?

Multiple Choice

• $1.23

• $1.47

• $1.35

• $1.10

• $.98