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

finances its assets with $$4,700,000$ debt $($costing $9\mathrm{.}0$ percent, all of which is tax

deductible$)$ and $220,000$ shares of stock selling at $$15$ per share. To reduce risk

associated with this financial leverage, the firm is considering reducing its debt by

$$2,700,000$ 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.$)$