Texas Instruments is an all$-$equity company and currently has $10,000$ shares of common stock. Each share can be bought or sold for $$25$ in today's market.

Texas Instruments is considering borrowing $$100,000$ by selling corporate bonds, and using the raised money to buy back a part of its outstanding shares of stock from the market. The yield to maturity $($or the annual rate of return$)$ for these bonds is $9\%.$

Calculate Texas Instruments' earnings per share at the break$-$even level of the company's EBIT, such that Texas Instruments' stockholdfris are neutral to Texas Instruments being financially levered or unlevered.

Multiple Choice

$$4\mathrm{.}06$

$$270$

$$2\mathrm{.}25$

$$275$