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Control Inc., has no debt outstanding and a total market valueof $100,000. EBIT is projected to be $6,000 if economic conditionsare normal. If there is a strong expansion in the economy, thenEBIT will be 30% higher. If there is a recession, then EBIT will be60% lower. The firm is considering a $40,000 debt issue with 5%interest rate. The proceeds will be used to repurchase shares ofstock. There are currently 2,500 shares outstanding. Ignore taxesfor this problem.Calculate EPS under each of the three economic scenarios beforeany debt is issued. Also, calculate the percentage changes in EPSwhen the economy expands or enters a recession. ($0.96; $2.4;$3.12, -60%; 30%)Repeat part (a) assuming that the firm goes through withcapitalization. ($0.27; $2.67; $3.87; -90%, 45%)Please no Excel, and Show formula. I will rate! Thank u