QUESTIONS 6 points (CLO-2) CARE Inc. has no debt outstanding and a total market value of $200.000 ming before interest and taxes are projected to be $40,000 economic conditions are normal if there is strong expansion in the economy, then Erwerbe 25 percent higherIf there is a recession, then it will be 35 percenter. The company is considering 50.000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 10,000 shares outstanding. The company has a tax rate of 22 percent A. Calculate the earnings per share (EPS) under each of the economic conditions. [1 mark) B. Also calculate the percentage changes in Eps when the economy expands or enters a recession. (1 mark) C Calculate the earnings per share (EPS) under each of the economic conditions assuming that the company goes through with the recapitalization. (1.5mark) D. Given the recapitalization, calculate the percentage changes in Eps when the economy expands or enters a recession. (T mars E. What do you conclude? (1 mark) For the toolbar, press ALTF10 (PC) or ALT.FNF10 (Mac US Paragraph Arial > 14px