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 figancial 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.) EPS before EDS anter Check my work Consider a firm with an EBIT of $550,000. The firm finances its assets with $1000.000 debt (costing 55 percent) and 200,000 shares of stock selling at $1200 per share. The firm is considering increasing its debt by $900,000, using the proceeds to buy back 75.000 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 form. Thus, EBIT will remain at $550.000 Calculate the change in the firm's EPS from this change in capital structure. (Round your answers to 2 decimal places.) I E EPS before ater IDenterence