Fujita, Incorporated, has no debt outstanding and a total market value of $$273,600.$ Earnings before interest and taxes, EBIT, are projected to be $$43,000$ if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be $17$ percent higher. If there is a recession, then EBIT will be $28$ percent lower. The company is considering a $$145,000$ debt issue with an interest rate of $6$ percent. The proceeds will be used to repurchase shares of stock. There are currently $7,600$ shares outstanding. The company has a tax rate of $21$ percent, a market$-$to$-$book ratio of $1\mathrm{.}0$ before recapitalization, and the stock price changes according to M&M$.$

a$-1.$

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$.$g$.,32\mathrm{.}16.)$

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 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 $($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$.,32\mathrm{.}16.)$

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$.,32\mathrm{.}16.)$ 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$-1.$ Expansion EPS

b$-2.$ Recession percentage change in EPS $\%$

b$-2.$ Expansion percentage change in EPS $\%$