Bavarian Brew EPS Bavarian Brew, an Unlevered Firm, Has a Perpetual EBIT of Perpetual

Bavarian Brew EPS
Bavarian Brew, an unlevered firm, has a perpetual EBIT of $500,000. The required return on assets for the firm’s assets is 10%. The company has 250,000 shares outstanding, trading at $20 per share. The company is considering raising $1 million in debt with a required return of 6% and would use the proceeds to repurchase 50,000 shares of outstanding stock.

-What are Bavarian Brew's earnings per share before the restructuring Assume corporate taxes of 34%

A) $1.32
B) $1.35
C) $1.42
D) $1.45