Charny Inc. has no debt outstanding and a total market value of $165,000. Earings before interest and taxes, EBIT, are projected to be $21,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20% higher. If there is a recession, then EBIT will be 25% lower Charny is considering a $60,000 debt issue with a 7% interest rate. The proceeds will be used to repurchase shares of stock. There are currently 5,500 shares outstanding, Charny has a tax rate of 35%. 0-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued (Do not round intermediate calculations. Omit S sign in your response.) Recession EPS 2.86 $ Normal $ 3.82 Expansion $ a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession (Do not round intermediate calculations. Negative answers should be indicated by a minus sign.) Percentage changes in EPS - 25.00 Recession Expansion 20.00 b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with Recession Expansion entage changes in ERS - 25.00 b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization (Round the final answers to 2 decimal places. Omit S sign in your response.) EPS Recession $ Normal $ 4.80 Expansion 3 6.00 1-2. Given the recapitalization calculate the percentage changes in EPS when the economy expands or enters a recession. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Percentage changes in EPS Recession Expansion 25