Fujita, Incorporated, has no debt outstanding and a total market value of $$220,000.$ Earnings before interest and taxes, EBIT, are projected to be $$36,000$ if 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 $25$ percent lower. The company is considering a $$125,000$ debt issue with an interest rate of $8$ percent. The proceeds will be used to repurchase shares of stock. There are currently $11,000$ shares outstanding. Ignore taxes for this problem.