Fujita, Incorporated, has no debt outstanding and a total market value of $$230,400.$ Earnings before interest and taxes, EBIT, are projected to be $$39,000$ if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be $13$ percent higher. If there is a recession, then EBIT will be $24$ percent lower. The company is considering a $$125,000$ debt issue with an interest rate of $6$ percent. The proceeds will be used to repurchase shares of stock. There are currently $7,200$ shares outstanding. Ignore taxes for questions $($a$)$ and $($b$).$ Assume the company has a market$-$to$-$book ratio of $1\mathrm{.}0$ and the stock price remains constant.