You are the CEO of a high-growth technology firm. The firm currently has 7.5 million shares outstanding, with a price of $70 per share. You plan to raise $140 million to fund an expansion by issuing new debt at an interest rate of 5.5%. With the expansion, you expect earnings next year of $26 million. Assume perfect capital markets. The forecast for next years EPS is closest to:

a.1.93

b.2.53

c.2.74

d.2.44