Jasper Industrial Has No Debt Outstanding and a Total Market

Multiple Choice

Jasper Industrial has no debt outstanding and a total market value of $216,000.Earnings before interest and taxes, EBIT, are projected to be $15,000 if economic conditions are normal.If there is strong expansion in the economy, then EBIT will be 12 percent higher.If there is a recession, then EBIT will be 15 percent lower.There are currently 8,600 shares outstanding.Ignore taxes.What is the percentage change in EPS when a normal economy slips into recession?

A) -15.5 percent
B) -15.2 percent
C) -15.0 percent
D) -16.1 percent
E) -14.8 percent