What happens to an all-equity firm's EPS when $1 million of 20% debt is issued and proceeds used to repurchase two-thirds of the stock if operating income equals $1.5 million and EPS were $2 when the firm was all-equity-financed? Ignore taxes. a. EPS increase to $2.60. b. EPS increase to $3.00. c. EPS increase to $4.80. d. EPS increase to $5.20