Honeycrisp, Incorporated, has no debt outstanding and a total market value of $$382,500.$ Earnings before interest and taxes, EBIT, are projected to be $$52,000$ if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be $14$ percent higher. If there is a recession, then EBIT will be $23$ percent lower. The company is considering a $$190,000$ debt issue with an interest rate of $7$ percent. The proceeds will be used to repurchase shares of stock. There are currently $8,500$ shares outstanding. The company has a tax rate of $25$ percent, a market$-$to$-$book ratio of $1\mathrm{.}0$ before recapitalization, and the stock price changes according to M&M$.$