Question: Can someone please give me the right answer, because after and difference is wrong. After 0.7416 and difference is 0.19304 is wrong. Consider a firm

Can someone please give me the right answer, because after and difference is wrong. After 0.7416 and difference is 0.19304 is wrong. Consider a firm with an EBIT of $860,000. The firm finances its assets with $2,600,000 debt (costing 7.4 percent) and 500,000 shares of stock selling at $5.00 per share. To reduce the firm's risk associated with this financial leverage, the firm is considering reducing its debt by $1,000,000 by selling an additional 300,000 shares of stock. The firm is in the 30 percent tax bracket. The change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at $860,000. Calculate the EPs before and after the change in capital structure and indicate changes in EPS. (Negative answer should be indicated by a minus sign. Round your answer to 5 decimal places,) EPS before $ EPS after $ Difference $

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