The High and Dry Boat Company has $120,000 of 15% bonds outstanding along with 2,000 shares of $2.50 (dividend) preferred stock and 3,000 shares of common stock. Assuming the firm has a 40% tax rate, compute the earnings per share (EPS) for the following levels of EBIT.
A. $30,000
B. $50,500
C. $90,000