Lands' End has 43 million shares outstanding and earnings are $1,376,000,000. The company wants to repurchase shares in the open market and has $8,010,500 currently not in use to spend on this. Lands' End shares are trading at $18.50 per share.

If the company uses the entire $8,010,500 to repurchase shares at the market price, what would be the company's earnings per share (EPS)? (Show Work)

If Lands' End's (with common shares selling at $18.50 a share) has an estimated price-to-earnings ratio (P/E) is 35, and the company borrows funds to repurchase shares at an after-tax cost of debt of 5%, what is likely to happen to the company's EPS? (Show Work)