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A company has no debt outstanding and a total market value of $181,000. Earnings before interest and taxes, EBIT, is projected to be $26,000 if

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A company has no debt outstanding and a total market value of $181,000. Earnings before interest and taxes, EBIT, is projected to be $26,000 if economic conditions are normal. If there is a good surprise, then EBIT will be 27 percent higher. If there is a bad surprise, then EBIT will be 33 percent lower. There are currently 7,100 shares outstanding. Assume the market-to-book ratio is 1.0, the total market value remains constant, and there are no taxes for this problem. What will earnings per share, EPS, be if there is a bad surprise? Enter your answer in the box shown below as dollars with 2 digits to the right of the decimal point

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