Consider a firm with an EBIT of $$856,000.$ The firm finances its assets with $$2,560,000$ debt $($costing

$8\mathrm{.}1$ percent and is all tax deductible$)$ and $460,000$ shares of stock selling at $$7\mathrm{.}00$ per share. To

reduce the firm$$s risk associated with this financial leverage, the firm is considering reducing its debt

by $$1,000,000$ by selling an additional $260,000$ shares of stock. The firm$$s tax rate is $21$ percent. The

change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at

$$856,000.$Consider a firm with an EBIT of $$856,000.$ The firm finances its assets with $$2,560,000$ debt $($costing

$8\mathrm{.}1$ percent and is all tax deductible$)$ and $460,000$ shares of stock selling at $$7\mathrm{.}00$ per share. To

reduce the firm's risk associated with this financial leverage, the firm is considering reducing its debt

by $$1,000,000$ by selling an additional $260,000$ shares of stock. The firm's tax rate is $21$ percent. The

change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at

$$856,000.$

Calculate the change in the firm's EPS from this change in capital structure.

Note: Do not round intermediate calculations and round your final answers to $2$ decimal

places.