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Asta Ltd. has no debt outstanding and a total market value of INR 1, 50,000. Earnings before interest and taxes [EBIT] are projected to be

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Asta Ltd. has no debt outstanding and a total market value of INR 1, 50,000. Earnings before interest and taxes [EBIT] are projected to be INR 14,000 if economic conditions are normal. If there is a strong expansion in the economy, then EBIT will be 30% higher. If there is a recession, then EBIT will be 60% lower. Company is considering an INR 60,000 debt issue with a 5% interest rate. The proceeds will be used to repurchase shares of stock. There are currently 2,500 shares outstanding. Ignore taxes Cal wdate Eaning per sa three economi ore CEs) undea eadh s berore C Scenasio s before any debt is oten issued the eanoy ex pands ou ento a recession the eCono

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