6:53 l LTE HW 2 CS Problem 16-2 EBIT,Tanes, and Leverage (LO2) 2 0 Ghost, Inc. has no debt outstanding and a total market value of $395.600. Earnings before interest and taxes, EBIT are projected to be $53,000 f economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 13 percent higher there is a recession, then EBIT will be 22 percent lower. The company is considering a $195.000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock There are currently 8,600 shares outstanding The company has a tax rate of 21 percent, a market-to-book ratio of 10 and the stock price remains constant * Calculate earnings per Share (EPS) under each of the three economic scenarios before any debt is issued. Do not found intermediate calculations and round your answers to 2 decimal places, e9. 32.16.) - Calculate the percentage changes in EPS when the economy expands or enters a recession (A negative answer should be indicated by a minus sign. Do not found intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.) Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with rocapitalization. (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g. 32.6. 2. Given the recapitalization calculate the percentage changes in EPS when the economy expands or enters a recession. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e... 32:16) NE BE EPS Gm