Northern Wood Products is an all$-$equity firm with $21,900$ shares of stock outstanding and a total market value of $$368,000.$ Based on its current capital structure, the firm is expected to have earnings before interest and taxes of $$34,000$ if the economy is normal, $$20,400$ if the economy is in a recession, and $$47,600$ if the economy booms. Ignore taxes. Management is considering issuing $$92,800$ of debt with an interest rate of $6$ percent. If the firm issues the debt, the proceeds will be used to repurchase stock. What will the earnings per share be if the debt is issued and the economy is in a recession?

Multiple Choice

$$68$

$$1\mathrm{.}74$

$$91$

$$1\mathrm{.}24$

$$2\mathrm{.}57$