Universal Energy Corp.'s management has decided to repurchase some of the company's shares. The company has 1,000,000 shares outstanding that trade at $20.00 per share. It plans to repurchase 200,000 shares at $20.00 and will use debt to finance the repurchase at an interest rate of 6.0%. The company's EBIT is $2,500,000.

Ignoring income taxes what are the earnings per share before and after the repurchase?

Group of answer choices

$2.50 before and $2.93 after

$2.50 before and $2.83 after

$3.13 before and $2.83 after

$2.26 before and $2.26 after