RAK, Inc, has no debt outstanding and a total market value of $220,000. Earnings before interest and taxes, EBIT, are projected to be $40,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 10 percent higher If there is a recession, then EBIT will be 20 percent lower RAK is considering a $135,000 debt issue with an interest rate of 4 percent. The proceeds will be used to repurchase shares of stock. There are currently 11,000 shares outstanding RAK has a tax rate of 35 percent a-1 Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS S Recession Normal Expansion $ $ 2-2 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 percent rounded to 2 decimal places, e.g., 32.16.) Percentage changes in EPS Recession Expansion b-1 Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Recossion Normal Expansion EPS S $ $ b-2 Given the recapitalization 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 percent rounded to 2 decimal places, e.g