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consider A firm with an EBIT of $12,100,000. the firm finances its assets with $53,200,000 debt (costing 7.6 percent) and 11,600,000 shares of stock selling

consider A firm with an EBIT of $12,100,000. the firm finances its assets with $53,200,000 debt (costing 7.6 percent) and 11,600,000 shares of stock selling $8.00 per share. the firm is considering increasing its debt by $26,600,000, using the proceeds to buy back shares of stock. The firm is in the 40% tax bracket. The change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at $12,100,000. Calculate the EPS before and after the change in capital structure and indicate changes in EPS. (Round your answers to 3 decimal places.)
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