5. Conservative Company has no debt. The amount of equity and assets is $800,000. There are 16,000 shares outstanding. The book value and market value of the shares are the same: $50. A new board member has suggested that changing the capital structure to include some debt might be a good idea. The CFO has come up with the following data: Most likely EBIT for next year Amount of Proposed Loan Interest Rate on Loan Tax Rate $500,000 $350,000 8% 21% Compute the earnings per share under each structure. EPS under current structure EPS under proposed structure Should Conservative do the restructuring? Yes or No