QUESTION 12 6 points ICLO-21 CORE Inc has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes. Et, are projected to be 545,000 if economic conditions are normal. If there is strong expansion in the economy, then it will be 20 percent higher. If there is a recession, then EBIT will be 30 percent lower. The company is considering 380,000 debt sur 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 Calculate the earnings per share (EPS) under each of the economic conditions. (1.5 marks) B. Also calculate the percentage changes in EPS when the economy expands or enters a recession (1 marts Calculate the earning per share (EPS) under each of the economic conditions assuming that the company goes through with the capitalisation (15 marts) D. Given the recapitaluation, calculate the percentage changes in EPS when the economy expands or enters a recension ( mark) E. What do you condude? (1 mark) For the toolbar, pre ALT=F10 IPC) or ALT INF10 (Mac) BI V. Paragraph Arial 140 IETE I. X 6