Loving Gardens has $6 million in assets, $700,000 EBIT, 80,000 shares of stock outstanding, and a marginal tax rate equal to 40 percent. If Loving Garden's debt-to-total-assets (D/TA) ratio is 70 percent, it pays 12 percent interest on debt, whereas if the D/TA ratio is 40 percent, interest is 9 percent. Calculate Loving Gardens EPS and ROE (ROE = Net Income / Equity) for each capital structure. Which capital structure is better?