ek 2 Chapter 2 Homework 3 Seved Problem 2-5 Income Statement (LG2-1) tax Consider a firm with an EBIT of $863,000. The firm finances its assets with $2,630,000 debt (costing 77 percent and is all deductible) and 530,000 shares of stock selling at $8.00 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 330,000 shares of stock. The firm's tax rate is 21 percent The change in capital structure will have no effect on the operations of the firm Thus, EBIT will remain at $863,000 supped Calculate the change in the firm's EPS from this change in capital structure. (Do not round intermediate calculations and round your final answers to 2 decimal places.) +Book EPS before P EPS after Difference 57 onts FimsCloseWindow