Northern Wood Products is an all-equity firm with 16,700 shares of stock outstanding and a total market value of $355,000. Based on its current capital structure, the firm is expected to have earnings before interest and taxes of $27,500 if the economy is normal, $15,200 if the economy is in a recession, and $39,800 if the economy booms. Ignore taxes. Management is considering issuing $88,900 of debt with an interest rate of 9 percent. If the firm issues the debt, the proceeds wil 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