1. Calculate the earnings per share (EPS) under each of the three scenarios before any debt is issued.
	2. Calculate the percentage change in EPS when the economy expands or enters a recession.
	Market value	$250,000		Solution template:
	EBIT	$25,000		No debt
	Expansion-EBIT	20%		EBIT
	Recession-EBIT	35%		Interest	-		-		-
	Debt issue	$96,000		NI	$		$		$
	Interest rate	6%		EPS	$		$		$
	Shares outstanding	6,000		Change EPS%	%		%		%
				With debt
				Share price =	$		-		-
				Shares repurchased =			-		-
				EBIT	$		$		$
				Interest	-		-		-
				NI	$		$		$
				EPS	$		$		$
				Change EPS%	%		%		%