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Ornaments, incorporated, is an all-equity firm with a total market value of $531,000 and 19,600 shares of stock outstanding. Management believes the earnings before interest

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Ornaments, incorporated, is an all-equity firm with a total market value of $531,000 and 19,600 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $74,700 if the economy is normal. If there is a recession, EBIT will be 15 percent lower, and if there is a boom, EBIT will be 25 percent higher. The tax rate is 22 percent. What the EPS in a recession

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