We want to understand the impact of issuing debt on the firm's EPS under different capital structures. Assume that the firm has the following current & proposed capital structures: Current Proposed Assets $20,000,000 $20,000,000 Debt $0 $12,000,000 Equity $8,000,000 $8,000,000 Debt/Equity 0 1.5:1 Ratio Share Price $ 10 $ 10 4,000,000 1,600,000 # common shares Interest Rate 5% 5% EBIT depends on the state of nature of the economy. There are three forecasts, as follows: Expansion: $2,500,000 Expected: $1,600,000 Recession: $800,000 Question 15: Compute the EPS in each of the three states of nature under the current capital structure. Answer format: X.XX e.g. 1.11 Expansion: Expected: Recession: Question 16: Compute the EPS in each of the three states of nature under the proposed capital structure. Answer format: X.XX e.g. 1.11 Expansion: Expected: Recession: Question 17: Compute the EBIT where EPS is the same under both the current and the proposed capital structures. O$800,000 O$1,000,000 O$1,400,000 O$1,500,000 O$1,200,000