Red Iron Mall Inc is an all-equity firm with 23,100 shares of stock outstanding and a total market value of $371,000. Based on its current capital structure, the firm is expected to have earnings before interest and taxes of $35,500 if the economy is normal, $21,600 if the economy is in a recession, and $49,400 if the economy booms. Ignore taxes. Management is considering issuing $93,700 of debt with an interest rate of 9 percent. If the firm issues the debt, the proceeds will be used to repurchase stock. What will the earnings per share be if the debt is issued and the economy is in a recession? Multiple Choice $1.08 $.57 $2.37 $1.57 $.76