RAK, Inc., has no debt outstanding and a total market value of dollar 240, 000. Earnings before interest and taxes, EBIT, are projected to be dollar 28,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 12 percent higher. If there is a recession, then EBIT will be 25 percent lower. RAK is considering a dollar 140, 000 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchases shares of stock. There are currently 12,000 shares outstanding. Ignore taxes for this problem. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not your intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) EPS Recession dollar Normal dollar Expansion dollar Calculate the percentage changes in EPS when the economy expands or enters a recession. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a rounded to 2 decimal places, e.g., 32.16.) Percentage changes in EPS Recession percentage Expansion percentage Calculate the earning per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS Recession dollar Normal dollar Expansion dollar Given the recapitalization, calculate the percentage changes in EPS when the economy expands of enters a recession. (Negative amounts should be indicated by a minus sign. Enter your answers as a rounded to 2 decimal places, e.g., 32.16.) Percentage changes in EPS Recession percentage