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Sunrise, Inc., has no debt outstanding and a total market value of $450,000. Earings before interest and taxes. EBIT, are projected to be $57.000 if

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Sunrise, Inc., has no debt outstanding and a total market value of $450,000. Earings before interest and taxes. EBIT, are projected to be $57.000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 16 percent higher If there is a recession, then EBIT will be 24 percent lower. The company is considering a $215,000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 9,000 shares outstanding. The company has a tax rate of 25 percent, a market-to-book ratio of 1.0. and the stock price remains constant. 0-1. 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.) 6-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. Calculate eamings 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., 32.10.) b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places. e... 32.18.) 2-1. Recession EPS Normal EPS Expansion EPS 2-2 Recession percentage change in EPS Expansion percentage chancen EPS Recession EPS Norma EPS 6.2 Expansion EPS Pecson percentage change in E nsor de certage chance

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