Brown Inc. expects EBIT to vary with the state of the economy as follows:

BOOM - 560

BASE- 125

BUST -200

Brown doesn't have any long-term debt and has 82 million shares outstanding, currently trading at $8.36. Because of political connections, it doesn't pay any taxes.

(1) What are the expected earnings per share (EPS) during a boom?

(2) What are the expected earnings per share (EPS) during a bust?

(3) Brown now issues bonds worth $37 million to buy back some shares. How many shares are outstanding after the restructuring (in million)?

(4) The interest rate on the debt is 9%. What are the expected earnings per share (EPS) during a boom after the restructuring?

(5) What are the expected earnings per share (EPS) during a bust after the restructuring?