Classy Office Supplies Inc. is an all equity firm with $2,000,000 in equity. It has been suggested that they borrow $800,000 at 6% and use it to buy back shares of their own stock, thereby changing their capital structure. There are 100,000 shares outstanding and they currently sell for $20/share. EBIT is expected to be $1,000,000 next year. Classy is in the 21% tax bracket What is the EPS under the current structure? What will EPS be under the proposed structure? Should Classy do the restructuring? Yes or No HTML Editor BI VA - AI E 2 1 1 1 x * = E - Voc TT 12pt - Paragraph - O words