Daddi Mac, Incorporated doesn$$t face any taxes and has $$350$ million in assets, currently financed entirely with equity. Equity is worth $$37$ per share, and book value of equity is equal to market value of equity. Also, let$$s assume that the firm$$s expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as shown below:

State Recession Average Boom

Probability of state $0\mathrm{.}250\mathrm{.}550\mathrm{.}20$

Expected EBIT in state $ $5$ million $ $10$ million $ $17$ million

The firm is considering switching to a $20-$percent$-$debt capital structure, and has determined that it would have to pay an $8$ percent yield on perpetual debt regardless of whether it changes the capital structure. What will be the standard deviation in EPS if the firm switches to the proposed capital structure?