The Eagle Foods EBIT is $400,000. The number of shares outstanding is 60,000, and the stock price is $20/share. Originally the firm had no debt. Now the firm decides to borrow $400,000 from the bank, with the interest rate of 8%. The firm uses the funding to repurchase its the stock. The firms tax rate is 25%. Please find the EPS changes after the recapitalization.

Group of answer choices

2.3

1.7

2.1

1.9