Castle, Inc. has no debt outstanding and a total market value of $220,000. Earnings before interest and taxes, EBIT, are projected to be $40,000 if economic conditions are normal If there is strong expansion in the economy, then EBIT will be 10 percent higher If there is a recession, then EBIT will be 20 percent lower The firm is considering a debt issue of $135,000 with an interest rate of 4 percent The proceeds will be used to repurchase shares of stock. There are currently 11,000 shares outstanding Ignore taxes for this problem. 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 Recession Normal Expansion $ $ $ -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... 32.) Percentage changes in EPS Recession Expansion 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... 3216.) LPS Recession Normal Expansion $ $