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Fujita, Incorporated, has no debt outstanding and a total market value of $200,000 Earnings before interest and taxes, EBIT, are projected to be $30,000 i

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Fujita, Incorporated, has no debt outstanding and a total market value of $200,000 Earnings before interest and taxes, EBIT, are projected to be $30,000 i economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 18 percent higher. If there is a recession, then EBIT will be 20 percent lower. The company is considering a $75,000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 8.000 shares outstanding Ignore taxes for this problem 0-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued (Do not round intermediate calculations and round your answers to 2 decimal places, e.9, 32.16.) 3-2. 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 round 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 os a percent rounded to 2 decimal places, e.g.3216.) 32.16.) b-2. Given the recapitalization, cakulate 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, eg..3216.) * a 1. Recession EPS a 1. Normal EPS a 1. Expansion EPS a-2. Recession percentage change in EPS a 2. Expansion percentage change in EPS b.1. Recession EPS b. 1. Normal EPS b.2. Expansion EPS 2. Recession percentage change in EPS b.2. Expansion percentage change in EPS % %

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