Northern Wood Products is an all-equity firm with 25,100 shares of stock outstanding and a total market value of $376,000. Based on its current capital structure, the firm is expected to have earnings before interest and taxes of $38,000 if the economy is normal, $23,600 if the economy is in a recession, and $52,400 if the economy booms. Ignore taxes. Management is considering issuing $95,200 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?

		$.71
		$1.26
		$1.72
		$.95
		$2.49