Kaelea, Inc., has no debt outstanding and a total market value of $90,000. Earnings before interest and taxes, EBIT, are projected to be $8,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 35 percent lower. Kaelea is considering a $34,000 debt issue with a 6 percent interest rate. The proceeds will be used to repurchase shares of stock. There are currently 3,600 shares outstanding. Ignore taxes for this problem. 1. What is the price per share? 2. What is the number of shares repurchased in the proposed capital structure? 3. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. 4. Repeat part (3) assuming that Kaelea goes through with recapitalization