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I can't figure out the incorrect ones. the question is posted below. Ghost, Inc.. has no debt outstanding and a total market value of $262,5DD.

I can't figure out the incorrect ones. the question is posted below.

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Ghost, Inc.. has no debt outstanding and a total market value of $262,5DD. Earnings before interest and taxes. EEIT, are proJected to he $42.DDD if economic conditions are normal. If there is strong expansion in the economy. then EBIT will oe1E percent higher. If there is a recession. then EBIT will be 2? percent lower. The company is considering a $14D.DDD debt issue with an interest rate of 5 percent. The proceeds will he used to repurchase shares of stock. There are curreme IEDD shares outstanding. The company has a tax rate of 25 percent. a market-to-boolr ratio of 1.0, and the stock price remains constant. a-'I. 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 places1 e.g., 32.15.} 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.1 32.15.] h-1. Calculate earnings per share (EPEI 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., 32.15.] h-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 1 decimal places, e.g.1 32.15.] Answer is complete but not entirely correct. e Recession EPS 3.07 Normal EPS 4.20 Expansion EPS 4.87 a- R EPS cession percentage change in -27.00 Expansion percentage change in EPS 16.00 q Recession EPS $ 0.34 Normal EPS 0.34 q Expansion EPS N 0.34 Recession percentage change in EPS -43.43 X Expansion percentage change in EPS 21.70 X %

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