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Campbell Nuts, Inc., has $25,000 of debt, with an annual interest expense of 12 percent. The number of shares outstanding is 7,500. The firm continues

Campbell Nuts, Inc., has $25,000 of debt, with an annual interest expense of 12 percent. The number of shares outstanding is 7,500. The firm continues to face the four cash flow scenarios; recession, normal, growth and boom. Given a corporate tax rate of 34 percent, complete the following table:

State

Earnings before interest and taxes

Interest expense

Net income before taxes

Taxes

Net income

Earnings per share

Recession

$4,000

?

?

?

?

?

Normal

?

?

$5,000

?

?

?

Growth

?

?

?

?

?

$0.85

Boom

?

?

?

$3,740

?

?

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