ng Air, Inc. has no debt outstanding and a total market value of $185,667. They provided the Wi following information. Economic Conditions Normal EBIT 15,700 . Expansion 18% higher than if normal . Recession 30% lower than if normal Shares outstanding: 8,450 1. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. Also, calculate the percentage changes in EPS when the economy expands or enters recession 2. Repeat part (a) assuming that the company goes through with recapitalization. What do you observe? Assume the stock price remains constant