Summer Tan, Incorporated, is an all-equity firm with a total market value of $509,000 and 35,300 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $77,400 if the economy is normal. If there is a recession, EBIT will be 30 percent lower, and if there is a boom, EBIT will be 40 percent higher. The tax rate is 35 percent. What is the EPS in a boom?

Multiple Choice

$.86.

$1.43

$1.85

$2.00

$1.00