Seattle Health Plans currently uses zero-debt financing. Its operating profit is $2 million, and it pays taxes at a 23 percent rate. It has $10 million in assets and, because it is all-equity financed, $10 million in equity. Suppose the firm is considering replacing 72 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?