Garson Corp. is looking at two possible capital structures. Currently, the firm is an all$-$equity firm with $$1\mathrm{.}2$ million dollars in assets and $200,000$ shares outstanding. The market value of each share of stock is $$6\mathrm{.}00.$ The CEO of Garson is thinking of leveraging the firm by selling $$600,000$ of debt financing and retiring $100,000$ shares, leaving $100,000$ outstanding. The cost of debt is $10\%$ annually, and the current corporate tax rate for Garson is $30\%.$ If the CEO believes that Garson will earn $$100,000$ per year before interest and taxes, should she leverage the firm? Explain.