Item25 15 points eBookPrintReferencesItem 25 Ornaments, Incorporated, is an all-equity firm with a total market value of $652,000 and 31,700 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $93,400 if the economy is normal. If there is a recession, EBIT will be 20 percent lower, and if there is a boom, EBIT will be 30 percent higher. The tax rate is 21 percent. What is the EPS in a recession?

$1.86

$1.24

$1.77

$2.30

$2.12