Lever Brothers has a debt ratio (debt to assets) of 60%.Management is wondering

Lever Brothers has a debt ratio (debt to assets) of 60%.Management is wondering if its current capital structure is tooaggressive. Lever Brotherss present EBIT is $3 million andprofits available to common shareholders are $1440000 with228571 shares of common stock outstanding. If the firm were toinstead have a debt ratio of 20% reduced interest expense wouldcause profits available to stockholders to increase to $1680000but 457143 common shares would be outstanding. What is thedifference in EPS at a debt ratio of 20% versus 60%?a. $-1.76b. $-2.63c. $-3.14d. $-4.37