Ghost, Inc., has no debt outstanding and a total market value of $240,000. Earnings before Interest and taxes, EBIT, are projected to be $26,000 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 20 percent lower. The company is considering a $150,000 debt issue with an Interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 15,000 shares outstanding. Ignore taxes for this problem 2-1. 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., 32.16.) 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., 32.16.) 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., 32.16.) 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., 32.16.) a-1. Recession EPS Normal EPS Expansion EPS Recession percentage change in EPS Expansion percentage change in EPS h.1 Rereseinn EPS a-2. Re a-2. Calculate the percentage changes in EPS when the economy expands or enter recession. (A negative answer should be Indicated by a minus sign. Do not ra Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. Calculate earings 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., 32.16.) b-2 Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be Indica by a minus sign. Do not round Intermediate calculations and enter your ans as a percent rounded to 2 decimal places, e.g., 32.16.) a-1 * * a-1. Recession EPS Normal EPS Expansion EPS I a-2. Recession percentage change in EPS Expansion percentage change in EPS b-1. Recession EPS Normal EPS b-2. Expansion EPS Recession percentage change in EPS Expansion percentage change in EPS *