Minion, inc. , has no debt outstanding and a total market value of $211,875. Earnings before interest and taxes, ebit, are projected to be $14,300 if economic conditions are normal. If there is strong expansion in the economy, then ebit will be 20 percent higher. If there is a recession, then ebit will be 35 percent lower. The company is considering a $33,900 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,500 shares outstanding. Ignore taxes for this problem.