ebit and leverage ghost inc., has no debt oustanding and a total market value of $185,000 Earnings before interest and taxes, EBIT are projected to be $29000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 30 percent higher. If there is a recession , then EBIT will be 40 percent lower. The company is considering a $65000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock . There are currently 7400 shares outstanding. Ignore taxes for this problem. a) Calculate earnings per share (EPS) under each of the three economic scenarious before any debt is issued b) Calculate the percentage changes in EPS when the ecnonomy expands or enters a recession c) Repeat part (a) assuming that the company goes through with recapitalization. What do you observe? Please do not not do in excel or word. Show full formula.