IMB Corporation's all earnings are paid out as dividends. Currently IMB is an all equity firm and it is expected to generate EBIT of $40 million over the next year. Currently RC has 10 million shares outstanding and its stock is trading for a price of $15.00 per share. IMBs management is considering borrowing $50 million at a rate of 4% and using this money to repurchase shares (assume repurchase price of $15.00). IMBs tax rate is 40%. Find companys EPS before and after recapitalization.