12. What is the company's EPS for the current year before recapitalizing?

13. What is the company's EPS for the current year if there were to recapitalize?

Use the following information for questions 12 and 13. Marvel Metalwork Company currently has no outstanding debt and a total market value of $4,000,000. Their past year EBIT is $800,000, with a 5% expected increase this current year. The company is considering adding debt to their balance sheet in the amount of $50,000, with the proceeds being used to repurchase shares of stock. Currently there are 5,000 shares of stock. Assume the cost of debt if 5% and corporate taxes are 21%