Eps

Hi sir,

Hope you’re doing well.

I had the following question, what level of earnings before interest and tax would result in the same EPS for the 2 financial options?

Company had 1000 ordinary shares in issue no debt. It choice to raise Additional £100,000 by issuing 9% long term debt, or issuing 500 shares. Company has 40% tax.
A) £27000
B) £ 21000
C)18000
D) 10800

The answer is A but I don’t understand how they get to that figure? Surely there must be a simpler way of arriving to that figure instead of calculating every single option a,b,c and d for share issue and debt option and see if the EPS are the same.

Thank you