. Webster's is an all-equity firm that has 25,000 shares of stock outstanding at a market price of $23 a share. The firm has earnings before interest and taxes of $210,000 and pays out all of its net income as dividends. Assume the tax rate is 0. Webster's has decided to issue $250,000 of debt at a rate of 7.6 percent and use the proceeds to repurchase shares. Once Webster's issues the debt, its earnings per share will: (Hint: First assume all of the proceeds of the debt issuance are used to purchase shares at the current market price. Next subtract the number of shares repurchased this way from the original number of shares outstanding to find the number of shares outstanding after repurchase to help find earnings per share after the repurchase. Be sure to take into account the impact of debt issuance on earnings.) a. increase from $8.40 to $12.70 b. increase from $8.40 to $13.52 c. decrease from $8.40 to $7.91 d. decrease from $8.40 to $8.02 e. remain constant