Fujita, Incorporated, has no debt outstanding and a total market value of $222,00 Earnings before interest and taxes, EBIT, are projected to be $18,000 if economi conditions are normal. If there is strong expansion in the economy, then EBIT will be 2 percent higher. there is a recession, then EBIT will be 30 percent lower. The compan is considering a $60,000 debt issue with an interest rate of 7 percent. The proceeds w be used to repurchase shares of stock. There are currently 7,400 shares outstanding The company has a tax rate of 21 percent. Assume a market-to-book ratio of 1.0 and th stock price remains constant. a-1. Calculate earnings per share, EPS, under each of the three economic scenaric before any debt is issued. (Do not round intermediate calculations and roun your answers to 2 decimal places, e.g., 32.16.) a-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 roun intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 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.g., 32.16.) b-2. Given the recapitalization, 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 and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is not complete. a-1. Recession EPS $ 1.35 a-1. Normal EPS $ 1.92 a-1. Expansion EPS $ 2.40 a-2. Recession percentage change in EPS % a-2. Expansion percentage change in EPS % b-1. Recession EPS b-1. Normal EPS b-1. Expansion EPS b-2. Recession percentage change in EPS b-2. Expansion percentage change in EPS % %