Check my work Consider a firm with an EBIT of $850.000. The firm finances its assets with $2.500.000 debt (costing 75 percent) and 400.000 shares of stock selling at $5.00 per share. To reduce the firm's risk associated with this fgancial leverage, the firm is considering reducing its debt by $1,000,000 by selling an additional 200.000 shares of stock. The firm is in the 40 percent tax bracket. The change in capital structure will have no effect on the operations of the firm Thus, EBIT will remain at $850,000 Calculate the change in the firm's EPS from this change in capital structure. (Round your answers to 2 decimal places.) ebook EPS before FDS et Difference