Question: Can you please solve it by using a formula, please no excel. i cant use it on exams. thank you! The Eagle Foods' EBIT is

Can you please solve it by using a formula, please no excel. i cant use it on exams. thank you!

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 furm uses the funding to repurchase its the stock. The firm's tax rate is 25\%. Please find the EPS changes after the recapitalization. 2.3 1.7 1.9 2.1

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