The CFO of Metal Recycling Inc. has come up with the following projected figures for next year:

Sales                                         275,000

Costs                                         70% of sales

Depreciation                             30,000

Tax rate                                   35%

Current Shares outstanding           11,000

Metal Recycling Inc has no debt currently, but the board is considering a loan of $300,000 at 11% interest, which they will use to repurchase shares of their own stock at $100 per share. The CFO thinks his projections of sales may be off by + or - 10%. Depreciation will stay the same. What will their EPS be under the current structure and under the proposed structure for each scenario? Is the restructuring a good idea?

Current Structure:

Worst Case ____________ Base Case_______________ Best Case _____________

Proposed Structure:

Worst Case ____________ Base Case_______________ Best Case _____________

Should they do the restructuring? __________________

                                                        Yes or no