Walker, Inc., has no debt outstanding and a total market value of $180,000. Earnings before interest and taxes, EBIT, are projected to be $19,000 if economic conditions are normal. If there is an expansion in the economy, then EBIT will be $28,000. If there is a recession, then EBIT will be $12,000. Walker is considering a $66,000 debt issue with a 5% interest rate. The proceeds will be used to repurchase shares of stock (this is known as recapitalization). There are currently 3,000 shares outstanding. Walker has a market-to-book ratio of 1.0.

1. Repeat part (g) assuming a corporate tax rate of 35%. (Round answers to 2 decimal places. Do not round intermediate calculations

1. Repeat part (h) assuming a corporate tax rate of 35%. (Round answers to 2 decimal places. Do not round intermediate calculations)
2. Repeat part (i) assuming a corporate tax rate of 35%.

g. Calculate earnings per share (EPS) under normal economic conditions assuming that the firm goes through with the recapitalization. Assume no taxes. (Round answers to 2 decimal places. Do not round intermediate calculations) 8.26 h. Calculate earnings per share (EPS) under the economic expansion assuming that the firm goes through with the recapitalization. Assume no taxes. (Round answers to 2 decimal places. Do not round intermediate calculations) 13.00 i. Calculate earnings per share (EPS) under the economic recession assuming that the firm goes through with the recapitalization. Assume no taxes. (Round answers to 2 decimal places. Do not round intermediate calculations) 4.58