Fujita, Incorporated, has no debt outstanding and a total market value of $296,400. Earnings before interest and taxes,

BIT, are projected to be $45,000 if economic conditions are normal, If there is strong expansion in the economy, then

EBIT will be 19 percent higher. If there is a recession, then EBIT will be 30 percent lower. The company is considering a

$155,000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There

are currently 7,800 shares outstanding. The company has a tax rate of 23 percent, a market-to-book ratio of 1.0, and the

stock price remains constant.

Fujita, Incorporated, has no debt outstanding and a total market value of $296,400. Earnings before interest and taxes, EBIT, are projected to be $45,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 19 percent higher. If there is a recession, then EBIT will be 30 percent lower. The company is considering a $155,000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,800 shares outstanding. The company has a tax rate of 23 percent, a market-to-book ratio of 1.0, and the stock price remains constant. 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.9. 32.16. b-1. Calculate earnings per share, EPS, under each of the three economic scenarios assuming the company goes through with recapitalization. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b-2. Given the recapltalization, 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