Lever Brothers has a debt ratio (debt to assets) of 40%.Management is wondering

Lever Brothers has a debt ratio (debt to assets) of 40%.Management is wondering if its current capital structure is tooconservative. Lever Brotherss present EBIT is $3 million andprofits available to common shareholders are $1560000 with342857 shares of common stock outstanding. If the firm were toinstead have a debt ratio of 60% additional interest expense wouldcause profits available to stockholders to decline to $1440000but only 228571 common shares would be outstanding. What is thedifference in EPS at a debt ratio of 60% versus 40%? A. $3.25 B.$1.75 C. $2.00 D. $4.50