5. Margaret Finance is the CFO of Dividends Rus Corp. She is trying to decide whether she should increase the dividend payment from $ 1.25 per share to $ 1.50 per share instead of using that money for repaying $ 2 m of long-term debt that would take the debt balance to $ 4 million. The Dividend Rus Corp is paying an 8% coupon rate and the current bond yield is 10%. The debt was issued at par. The company latest after-tax Earnings is $ 32 m, up from after-tax Earnings of $ 24 m the year before. The Industry-average EPS is $ 3.25. The Net Income Before Taxes was $ 40 million. The company pays a flat tax rate (marginal tax rate = average tax rate). Required: a. What was the change in EPS (dollar and percentage)? b. How compare Dividends Rus Corp EPS to the industry average EPS? i. Why would this be important to a potential investor? ii. Should Margaret increase dividends or repay $ 2 million of debt? Explain thoroughly