Nielson Motors is currently an all equity financed firm.  It…

Nielsоn Mоtоrs is currently аn аll equity finаnced firm.  It expects to generate EBIT of $14 million over the next year.  Currently Nielson has 8 million shares outstanding and its stock is trading at $20.00 per share.  Nielson is considering changing its capital structure by borrowing $40 million at an interest rate of 2% and using the proceeds to repurchase shares.  Assume perfect capital markets and there is no tax. Nielson's EPS if they change their capital structure is closest to: