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ABC Co is currently 100% equity financed, has 25,000 shares outstanding at a price of $30 a share, and produces an annual EBIT of $150,000. The firm is considering issuing $240,000 of debt and repurchasing shares. The cost of debt is 12%. Ignore taxes. By how much will EPS change if the company issues the debt and EBIT remains constant? XYZ Co has a $475,000 bond issue outstanding. These bonds have a 8% coupon, pay interest annually, and have a current market price equal to 102.7% of face value. What is the amount of the annual interest tax shield given a tax rate of 34%