3. JR Computers, a firm that manufactures and sell personal computers is an all-equity firm with 100,000 shares outstanding, $10 million in earnings after taxes and a market value of $150 million Assume that this firm borrows $60 million at an interest rate of 8% and buys back 40,000 shares, using the funds. If the firm's tax rate is 50% estimate (a) the effect on earnings per share of the action. (b) What should the interest rate on the debt be for the earnings per share effect to disappear