Wing Air, Inc. has the financial data shown below. Calculate for each of the three scenarios: EPS before any debt is issued Percent change in EPS Market value $360,000 Base - EBIT $55,000 Optimistic - EBIT +10% Pessimistic - EBIT -8% Debt issue $66,000 Interest rate 5% Tax rate 21% Shares outstanding 5,000

Market value			EPS and EPS Percent Change by Scenario
EBIT			No Debt	Bear	Base	Bull
Change to EBIT - Bull Scenario			EBIT
Change to EBIT - Bear Scenario			Interest
Debt issue			Taxable income
Interest rate			Taxes
Shares outstanding			Net income
Tax rate			EPS
Market value per share			Change EPS (%)
# of shares repurchased			With New Debt
			EBIT
			Interest
			Taxable income
			Taxes
			Net income
			EPS
			Change EPS%