Fujita, Incorporated, has no debt outstanding and a total market value of $220,000. Earnings before interest in taxes, EBIT, are projected to be $36,000 if the economic conditions are normal. If there's a strong expansion in the economy, then EBIT will be 18% higher. If there's a recession then if it will be 25% lower. The company is considering oh 125,000 $ debt issue with an interest rate of 8%. The proceeds will be used to re-purchase shares of stock. There are currently 11,000 shares outstanding. Ignore taxes for this problem.

a-1. calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued.

a-2. calculate the percentage changes in EPS when the economy expands or enters a recession.

b-1. calculate earnings per share, EPS, under each of the three economic scenarios assuming that the company goes through with the recapitalization.

b-2. given the recapitalization, calculate the percentage changes in EPS, when the economy expands, or enters a recession.

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. a-1. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. Note: Do not round intermediate calculations and round 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. Note: 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 recopitalization. Note: 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. Note: 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.9., 32.16