Northern Wood Products is an all-equity firm with 16000 shares of stock outstanding and a total market value of $352000. Based on its
current capital structure the firm is expected to have earnings before interest and taxes of $26000 if the economy is normal $3000 if the economy is in a
recession and $33000 if the economy booms. Ignore taxes. Management is considering issuing $88000 of debt with a 6 percent coupon rate. If the firm issues
the debt the proceeds will be used to repurchase stock. What will the earnings per share be if the debt is issued and the economy is in a recession?