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Fulta. Incorporated, has no debt outstanding and a total niarket value of $2500000. Earnings before interest and taves. EBI, are projected to be $40000 if

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Fulta. Incorporated, has no debt outstanding and a total niarket value of $2500000. Earnings before interest and taves. EBI, are projected to be $40000 if economic conditions are normal. If there is strong expanslon in the economy. then EBII will be 20 percent higher. If there is a recession, then EBII will be 20 percerit lower. The compary is considering a $105,000 debt issue with an interest rate of 4 percent. The proceeds wili be used to repurchase shares of stock. There are curtently 10,000 shares outstanding Ignore taxes for this problem. a-1. Calculate earnings per share (EPS) under each of the three economic scenarlos before any debtis issued. (Do not round intermediate calculations and round your onswers to 2 decimal places, e.g, 32.16.) a-2. Caloulate 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 0 percent rounded to 2 decimal places, e.g. 32.16.) b-1. Calculate eamings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapilatilation. (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 negotive onswer should be indicoted by a minus sign. Do not round intermediote calculations and enter your answers as a percent rounded to 2 decimal places, 1.9 - 32.16.) intermediate calculations and enter your answers as a percent roun decimal places, e.g., 32.16.) b-1. Calculate earnings per share (EPS), under each of the three economic : assuming the company goes through with recapitalization. (Do not rou intermediate calculations and round your answers to 2 decimal placi 32.16.) b-2. Given the recapitalization, calculate the percentage changes in EPS wh economy expands or enters a recession. (A negative answer should b : by a minus sign. Do not round intermediate calculations and enter yo as a percent rounded to 2 decimal places, e.g., 32.16.)

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