UT ABC, Inc., is an all-equity firm with 18,700 shares of stock outstanding and a total market value of $360,000. Based on its current capital structure, the firm is expected to have earnings before interest and taxes of $30,000 if the economy is normal, $17,200 if the economy is in a recession, and $42,800 if the economy booms. Ignore taxes. Management is considering issuing $90,400 of debt with an interest rate of 6 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 $1.75 $.63 $2.67 $1.21 $.84