Minion, Inc., has no debt outstanding and a total market value of $250,000. Earnings before interest and taxes, EBIT, are projected to be $40,000 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 20 percent lower. The company is considering a $105,000 debt issue with an interest rate of 4 percent. The proceeds will be used to repurchase shares of stock. There are currently 10,000 shares outstanding. Ignore taxes for this problem. a-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.) \begin{tabular}{|c|c|c|c|} \hline \multirow[t]{3}{*}{ a-1. } & Recession EPS & F & \\ \hline & Normal EPS & . & \\ \hline & Expansion EPS & & \\ \hline \multirow[t]{2}{*}{ a-2. } & Recession percentage change in EPS & 3 & % \\ \hline & Expansion percentage change in EPS & 7 & % \\ \hline \multirow[t]{3}{*}{ b-1. } & Recession EPS & p & \\ \hline & Normal EPS & & \\ \hline & Expansion EPS & & \\ \hline \multirow[t]{2}{*}{ b-2. } & Recession percentage change in EPS & & % \\ \hline & Expansion percentage change in EPS & & % \\ \hline \end{tabular}