Sunrise, Inc., has no debt outstanding and a total market value of $245,000. Earnings before interest and taxes (EBIT) are projected to be $19,000 if economic conditions are normal, 25% higher in an expansion period, and 40% lower in a recession. There are currently 5,000 shares outstanding. Assume the stock price is constant under all scenarios and a market-to-book ratio of 1.0.

Assuming a tax rate of 21% and a $58,800 debt issue at 8% interest for a stock repurchase, calculate the EPS and ROE under each of the three economic scenarios.