Seattle Health Plans currently uses zero-debt financing. Its operating profit is $8 million, and it pays taxes at a 27 percent rate. It has $7 million in assets and, because it is all-equity financed, $7 million in equity. Suppose the firm is considering replacing 22 percent of its equity financing with debt financing that bears an interest rate of 8 percent. What impact would the new capital structure have on the firm's profit?