Minion, Inc., has no debt outstanding and a total market value of $211,875. Earnings before interest and taxes, EBIT, are projected to be $14,300 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. The company is considering a $33,900 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,500 shares outstanding. Ignore taxes for this problem.

a-1.	Recession EPS
	Normal EPS
	Expansion EPS
a-2.	Recession percentage change in EPS	-35	%
	Expansion percentage change in EPS	20	%
b-1.	Recession EPS
	Normal EPS
	Expansion EPS
b-2.	Recession percentage change in EPS	-40.80	%
	Expansion percentage change in EPS	23.32	%