Please help with part b

The Sandwich With A Pretty Big Pickle In It Corporation exists in a world of perfect capital markets with no market imperfections (such as corporate taxes or costs of financial distress). The firm has zero debt outstanding and its 8.50 million ordinary shares currently trade for a total market value of $247.35 million The firm projects that their EBIT (Earnings Before Interest and Taxes) will be $22.76 million each year it economic conditions are normal. They also estimate that if the economy experiences a boom in growth that their EBIT will be 15.0% higher. Similarly, they forecast that if there is a recession, then their EBIT will shrink by 25.0%. The Sandwich With A Pretty Big Pickle In It Corporation is considering a undertaking a leveraged recapitalization, which would consist of issuing $124.70 million worth of new debt at par and using the proceeds from the sale to repurchase ordinary shares from investors. The debt would cost the firm an interest rate of 4.60% per annum. You are encouraged to do no rounding in your intermediate calculations. Only round the final answers that you input as specified by the questions. A) Using the above information, calculate the EPS (.e. Earnings Per Share) of The Sandwich With A Pretty Big Pickle In It Corporation under each of the three economic states prior to issuing the debt. Round each of your answers to 3 decimal places BEFORE RECESSION NORMAL BOOM EPS $ 2.008 $ 2.678 S 3.079 Your last answer Your last answer was interpreted as follows: 2.008 was interpreted as follows: 2.678 Your last answer was interpreted as follows: 3.079 Use the unrounded versions of your above answers to answer the following two questions: Compared to the normal economic state, how much larger (as a percentage) is the firm's EPS under the BOOM economic state? 15.000 % (Round your answer to 3 decimal places) Your last answer was interpreted as follows: 15.000 Correct answer, well done. Marks for this submission: 1.00/1.00. Compared to the normal economic state, how much smaller (as a percentage) is the firm's EPS under the RECESSION economic state? 25.000 % (Round your answer to 3 decimal places. No minus sign is needed) Your last answer was interpreted as follows: 25.000 Correct answer, well done. Marks for this submission: 1.00/1.00 B) Now assume that the firm has borrowed the funds and completed the share repurchase. Recalculate the firm's EPS under each of the economic scenarios. Round each of your answers to 3 decimal places AFTER RECESSION NORMAL BOOM EPS B) Now assume that the firm has borrowed the funds and completed the share repurchase. Recalculate the firm's EPS under each of the economic scenarios. Round each of your answers to 3 decimal places. AFTER RECESSION NORMAL BOOM EPS Use the unrounded versions of your above answers to answer the following two questions: Compared to the normal economic state, how much larger (as a percentage) is the firm's EPS under the BOOM economic state now that has completed the leveraged recapitalisation? % (Round your answer to 3 decimal places) Compared to the normal economic state, how much smaller (as a percentage) is the firm's EPS under the RECESSION economic state now that it has completed the leveraged recapitalisation? % (Round your answer to 3 decimal places. No minus sign is needed) Check