RAK, Inc., has no debt outstanding and a total market value of $$240,000.$ Earnings before interest and taxes, EBIT, are projected to be $$26,000$ if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be $18$ percent higher. If there is a recession, then EBIT will be $20$ percent lower. RAK is considering a $$150,000$ debt issue with an interest rate of $8$ percent. The proceeds will be used to repurchase shares of stock. There are currently $15,000$ shares outstanding. RAK has a tax rate of $35$ percent.

$1)$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$.,32\mathrm{.}16.)$

$2)$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$.,32\mathrm{.}16.)$

$3)$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$.,32\mathrm{.}16.)$

$4)$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$.,32\mathrm{.}16.)$