Money, Inc., has no debt outstanding and a total market value of $200,000. Earnings before interest and taxes, EBIT, are projected to be $30,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 18 percent h

      Money,   Inc., has no debt outstanding and a total market value of $200,000. Earnings   before interest and taxes, EBIT, are projected to be $30,000 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 20   percent lower. Money is considering a $75,000 debt issue with an interest   rate of 8 percent. The proceeds will be used to repurchase shares of stock.   There are currently 8,000 shares outstanding. Ignore taxes for this   problem.           a-1.  Calculate earnings per share,   EPS, under each of the three economic scenarios before any debt is issued. (Do not round intermediate   calculations and round your final answers to 2 decimal places. (e.g., 32.16))           EPS     Recession   $          Normal   $          Expansion   $                    a-2. Calculate the percentage changes   in EPS when the economy expands or enters a recession. (Do not round intermediate calculations. Negative amounts   should be indicated by a minus sign.)         Percentage   changes in EPS     Recession   %          Expansion %                 b-1. Calculate earnings per share   (EPS) under each of the three economic scenarios assuming the company goes   through with recapitalization. (Do not round intermediate   calculations and round your final answers to 2 decimal places. (e.g., 32.16))           EPS     Recession   $          Normal   $          Expansion   $                    b-2. Given the recapitalization,   calculate the percentage changes in EPS when the economy expands or enters a   recession. (Negative amounts should be indicated by a   minus sign. Do not round intermediate calculations and round your final   answers to 2 decimal places. (e.g., 32.16))        Percentage   changes in EPS     Recession   %              Expansion %