What is this problemFujita, Incorporated, has no debt outstanding and a total market value of $$332,100.$ Earnings before interest and taxes, EBIT, are projected to be $$48,000$ 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 $29$ percent lower. The company is considering a $$170,000$ debt issue with an interest rate of $7$ percent. The proceeds will be used to repurchase shares of stock. There are currently $8,100$ shares outstanding. The company has a tax rate of $21$ percent, a market$-$to$-$book ratio of $1\mathrm{.}0,$ and the stock price remains constant.

Q$-1.$ Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued.

Note: Do not round Intermedlate calculatlons and round your answers to $2$ declmal pleces, e$.$g$.,32\mathrm{.}16.$

$0-2.$ Calculate the percentage changes in EPS when the economy expands or enters a recession.

Note: A negatlve answer should be Indlcated by a minus sign. Do not round Intermedlate colculatlons and enter your onswers os a percent rounded to $2$ decimel places, e$.$g$.,3216.$

b$-1.$ Calculate earnings per share. EPS, under each of the three economic scenarios assuming the company goes through with recapitalization.

Note: Do not round Intermedlete colculatlons and round your answers to $2$ declmol places, e$.$g$.,32\mathrm{.}16.$

b$-2$ Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession.

Note: A negatlve answer should be Indlcated by a minus sign. Do not round Intermedlate colculatlons and enter your answers as a percent rounded to $2$ declmol ploces, e$.$g$.,32\mathrm{.}16.$

$\backslash$table$[[$a$-1.$ Recession EPS,,,$],[$Normal EPS,,,$],[$Expansion EPS,,,$],[$a$-2.$ Recession percentage change in EPS,,,$],[$Expansion percentage change in EPS,,,$],[$b$-1.$ Recession EPS,,$\%,],[$Normai EPS,,,$],[$b$-2.$ Expansion EPS,,,$],[$Recession percentage change in EPS,,$\%,],[$Expansion percentage change in EPS,,$\%,]]$