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EPS and Debt-to-Equity Premier Stonework's shareholders believe that paying off the company's debt of $12,000,000 with a new stock issue will improve their EPS. Premier's EPS is currently $8.14. There are 1,900,000 shares outstanding that sell for $25 each. Premier's tax rate is 21% and the interest rate on its debt is 5%. What would the EPS be if Premier issued new shares and used the proceeds to retire its debt? Are the shareholders correct in thinking that EPS would go up? Premier's current earnings before interest and taxes (EBIT) is $ (Round to the nearest dollar.) If Premier issued new shares and used the proceeds to retire its debt, the EPS would be $ (Round to the nearest cent.) Are the shareholders correct in thinking that EPS would go up? (Select from the drop-down menus.) the EPS is after the recapitalization