This is a publicly-traded company with 50 million shares outstanding. Its current share price is $16.4 per share. The company also has $400 million debt with 3% interest rate charged by the lender. The management is considering two financing alternatives to raise $100 million from capital markets for the development of a new product. Under Option A, they will sell new shares at the current stock price; under Option B, they will borrow at the current cost of debt. The company's marginal tax rate is 40%.

What is the EBIT-EPS indifference level?

If the management expects an EBIT of $30, which option should they select to maximize EPS?