firm issues 100,000 equity sures with a total market value of $5,000,000. The firm's market value of debt is also of equal amount, i.e., $5,000,000. The firm is expected to enerate $1.5 million in operating income and pay $250,000 in interest. Ignoring taxes, this will generate $12.50 camnings per share. What will happen to EPS if the firm's borrowing and interest expense increases by 30% and the number of shares in circulation is cut by 30% (assuming that the share price remains unchanged with this change in capital structure y? EPS Increase to $22.50 EPS docense to Sil.67 EPS increase $15.00 EPS increase to 523 50