QUESTION 12 points Se ICLO 2 CORE Inc. has no debt outstanding and a total market value of 5240,000. Earnings before interest and taxes, EBVT, are projected to be 545,000 sf economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 10 percent lower. The company is considering 590.000 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 Calculate the earnings per share (EPS) under each of the economic conditions. (15 marks) B. Also calculate the percentage changes in EPS when the economy expands or enters a recession (1 mark) Calculate the earnings per share (EPS) under each of the economic conditions assuming that the company goes through with the recapitalization. (15 marts) D. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession (1 mark) E. What do you condude? [1 marko