Pluto Manufacturers plans to repurchase $$10$ million worth of common stock with borrowed funds. The following information is provided:

Repurchase price $=$ $$25$

Net income after tax $=$ $$120$ million

EPS before repurchase $=$ $$1\mathrm{.}50$

Given that the company finances the repurchase by borrowing at an after$$tax interest rate of $6\mathrm{.}0\%,$ its EPS after the repurchase will most likely be:

Group of answer choices

Higher than before the repurchase.

Lower than before the repurchase.

Same as that before the repurchase.