Beckett, Inc., has no debt outstanding and a total market value of $ 155,000. Earnings before interest and taxes, EBIT, are projected to be $ 14,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 30.9 percent higher. If there is a recession, then EBIT will be 61.8 percent lower. Beckett is considering an $ 62,000 debt issue with a 5 percent interest rate. The proceeds will be used to repurchase shares of stock. There are currently 2,500 shares outstanding. Ignore taxes for this problem.

Required:

a. Earnings per share, EPS, for the recession, normal, and expansion scenarios before any debt is issued are $______ , $ _______ , and $________ , respectively (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16)). If the economy enters a recession or expands, EPS will change by______ percent or _______percent, respectively (Negative amount should be indicated by a minus sign. Do not include the percent signs (%). Do not round interim calculations. Round your answers to 2 decimal places. (e.g., 32.16)).

b. Now assume that Beckett goes through with recapitalization. Earnings per share, EPS, for the recession, normal, and expansion scenarios are $_______ , $________ , and $________ , respectively (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16)). If the economy enters a recession or expands, EPS will change by ______ percent or _____ percent, respectively (Negative amount should be indicated by a minus sign. Do not round interim calculations. Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16)).