Corporation has no debt outstanding an a total market value of $$220,000.$ Earnings before interest and taxes, EBIT are projected to be $$40,000$ if economic conditions are nomal. If there is a 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 company is considering a $$135,000$ debt issue 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 under each for each of three economic scenarios before any debt issues This includes recession EPS, normal EPS and expansion EPS. $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.32\mathrm{.}16).$

A$2.$ Calculate the percentage changes in RPS when the economy expands or enters a recession. $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.32\mathrm{.}16).$

B$1.$ Calculate earnings per share $($EPD$)$ under each of the three economic scenarios assuming the company goes through with recapitalization. This includes recession EPS, normal EPS and expansion EPS. $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.32\mathrm{.}16).$

B$2.$ Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters recession. $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.32\mathrm{.}16).$

Recession EPS

Normal EPS

Expansion EPS

Recession percentage change I EPS

Expansion percentage change in EPS

Recession EPS

Normal EPS

Expansion EPS

Recession percentage change in EPS

Expansion percentage change in EPS