Consider a firm with an EBITDA of $$13,800,000$ and an EBIT of $$10,900,000.$ The firm finances its assets with $$50,800,000$ debt $($costing $6\mathrm{.}9$ percent all of which is tax deductible$)$ and $10,400,000$ shares of stock selling at $$10\mathrm{.}00$ per share. The firm is considering increasing its debt by $$25,400,000,$ using the proceeds to buy back shares of stock. The firms tax rate is $21$ percent. The change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at $$10,900,000.$Calculate the EPS before and after the change in capital structure and indicate changes in EPS.