Problem 13-2 EBIT, Taxes, and Leverage [LO2] Fujita, Incorporated, has no debt outstanding and o total market value of $320,000. Earnings before interest and takes, EBrT, are projected to be $47,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 19 percent figher. If there is a recesston, then EgrT witt bo 30 percent lowet. The company is considering a $165000 debt issue with an interest. rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,000 shares outstanding. The company has-a tax rate of 25 percent, a market-to-book ratio of 1,0 , and the stock price remains constant. a-1. Cotcutate earnings pershare, EPS, under esch of the three economic scenarios before any debt is issued. Note: Do not round intermedlate calculations and round your answers to 2 decimal places, e.9., 32.16. a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 declmat places, e.g. 32.16 . b-1. Calculate earnings per share, EPS, under each of the three economic scenorios assuming the company goes through with recapltalization. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.9., 32.16. b-2. Given the recapitalization, calculate the percentage changes in EPS when the conomy expands or enters a recesslon. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.9., 32.16