Consider a firm with an EBITDA of $$1,100,000$ and an EBIT

of $$1,000,000.$ The firm finances its assets with $$4,660,000$

debt $($costing $8\mathrm{.}2$ percent, all of which is tax deductible$)$ and

$212,000$ shares of stock selling at $$14$ per share. To reduce

risk associated with this financial leverage, the firm is

considering reducing its debt by $$2,660,000$ by selling

additional 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 $$1,000,000.$

Calculate the EPS before and after the change in capital

structure and indicate changes in EPS. $($Do not round

intermediate calculations. Round your answers to $2$

decimal places.$)$