Problem $2-31$ Spreadsheet Problem: Income Statement $($LG$2-1)$

Consider a firm with an EBITDA of $$15,600,000$ and an EBIT of $$11,800,000.$ The firm finances its assets

with $$52,600,000$ debt $($costing $7\mathrm{.}3$ percent all of which is tax deductible$)$ and $11,300,000$ shares of stock

selling at $$8\mathrm{.}00$ per share. The firm is considering increasing its debt by $$26,000,000,$ using the proceeds

to buy back 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 $$11,800,000.$

Calculate the EPS before and after the change in capital structure and indicate changes in EPS.

Note: For "Change in EPS", note negative changes with a negative sign. Round your answers to $3$

decimal places.