Sunrise, Inc., has no debt outstanding and a total market value of $220,000. Earnings before interest and taxes, EBIT, are projected to be $36,000 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 25 percent lower. The company is considering a $125,000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 11,000 shares outstanding. Ignore taxes for this problem. Assume the stock price is constant under all scenarios.

A) Calculate earnings per share (EPS) under the economic scenario of "Normal" assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

B) Calculate earnings per share (EPS) under the economic scenario of "Expansion" assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

C) Given the recapitalization, calculate the percentage changes in EPS when the economy enters a recession from normal.

D)Given the recapitalization, calculate the percentage changes in EPS when the economy expands from normal.