Castle in has no debt outstanding and a total mkt of 250000 earnings before interest and taxes ent are projected to be 42000 if economic conditions are normal. If strong expansion bet will be 18% higher if recession 30% lower. Debt issue of 100000 with a interest rate of 8%

2 a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS 50 points Recession tA 1. 91 Normal $ 2. 73 Expansion $ 3.22 a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number, e.g., 32.) Percentage changes in EPS Recession 26 X Expansion 18 v b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS Recession 13910 x Normal 22100 X Expansion 27014