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Daido Ltd. common shares sell at $40 a share, and their estimated price-to-earnings ratio (P/E) is 32. If Daido borrows funds to repurchase shares at

Daido Ltd. common shares sell at $40 a share, and their estimated price-to-earnings ratio (P/E) is 32. If Daido borrows funds to repurchase shares at its after-tax cost of debt of 5%, would the company's EPS most likely increase, decrease, or stay the same?

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