Fowler, Inc., has no debt outstanding and a total market value of $$180000.$ Earnings before interest and taxes, EBIT, are projected to be $$25000$ 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 $$60,000$ with an interest rate of $5$ percent. The proceeds will be used to repurchase shares of stock. There are currently $6000$ shares outstanding. The firm has a tax rate $21\%.$ Assume the stock price is constant under all scenarios.

Assuming the company goes through with recapitalization. Calculate Earnigs Per Scahre $($EPS$)$ under each of the three scenarios after recapitalization. Normal, Recession $(20\%$ lower$)$ & Expansion $(10\%$ higher$)$