A firm has earnings per share of $2.12 on 40,000 shares outstanding. The firm also has $360,000 in debt at a cost of 9%. Ignore taxes. What is the EBIT?

A) $84,800
B) $91,600
C) $102,300
D) $117,200
E) $119,700

Earnings per Share

A company's profit divided by its number of outstanding shares of stock, indicating the portion of a company's profit allocated to each share.

Cost of Debt

The effective rate that a company pays on its total debt, serving as a measure of the risk and a way to gauge the company's ability to manage its debt effectively.

Shares Outstanding

The total number of shares of a company’s stock that are currently owned by all its shareholders.