Based on your calculations, knowledge and opinion, what recommendation would you make to management? Why? Explain using a minimum of 3 sentences.

Cabana Cruise Line uses a combination of debt and equity to fund operations, and they have a bond rating of A. Market capitalization consists of 12 million hares outstanding and currently trades at a value of $51 per share. The company has a current valuation of $850 million. Additional information is rovided in the questions below