$1.$ Asher Inc. has no debt outstanding and a total market value of $$200,000.$ Earnings before interest and taxes, EBIT, are projected to be $$40,000$ if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be $35\%$ higher. If there is a recession, then EBIT will be $15\%$ lower. Asher is considering a $$50,000$ debt issue with a $6\%$ interest rate. The proceeds will be used to repurchase shares of stock. There are currently $10,000$ shares outstanding. Ignore taxes for this problem.

a$.$ Calculate earnings per share $($EPS$)$ under each of the three economic scenarios after the debt has been issued.