Reliable Gearing currently is all$-$equity$-$financed. It has $22,000$ shares of equity outstanding, selling at $$100$ a share. The firm is considering a capital restructuring. The low$-$debt plan calls for a debt issue of $$320,000$ with the proceeds used to buy back stock. The high$-$debt plan would exchange $$520,000$ of debt for equity. The debt will pay an interest rate of $10\%.$ The firm pays no taxes.

What will be the debt$-$to$-$equity ratio if it borrows $$320,000?$

Note: Round your answer to $2$ decimal places.

If earnings before interest and tax $($EBIT$)$ are $$230,000,$ what will be earnings per share $($EPS$)$ if Reliable borrows $$320,000?$

Note: Round your answer to $2$ decimal places.