MGB INC,l is an all-equity (unleveraged) firm with a total market value of $240,000, and stock price per share of $20. The firm has 12,000 shares of stock outstanding. Management is considering issuing $150,000 of debt at an interest rate of 8 percent and using the proceeds on a stock repurchase. Management believes that the company will have earnings before interest and taxes (EBIT) of $65,000. Assuming a corporate rate of 25%, compute earnings per share (EPS) and ROE for this firm if the firm proceeds with the share repurchase. Show your work.