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Can you please help with this. I am having difficulty getting started. I might be overthinking it. Thank you. River Cruises is all- equity- financed

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Can you please help with this. I am having difficulty getting started. I might be overthinking it. Thank you.

image text in transcribed
River Cruises is all- equity- financed . Current Data Vumber of shares 100, 000 Price per share 10 Market value of shares $ 1 , 000 , 000 State of the Economy\ Slump Normal Boom Profits before interest 76 , 000 127, 000 188 , 500 Suppose it now issues $250, 000 of debt at an interest rate of 10% and uses the proceeds to repurchase* 25, 000 shares . Assume that the firm pays no taxes and that debt finance has no impact on firm value ." Refer to the above table to compute the missing data . I Do not round intermediate calculations . Round " Earnings per share " to 3 decimal places . Enter " Return on shares" as a percent rounded to 2 decimal places . !` Outcomes Number of shares Price per share* Market value of shares Market value of debt State of the Economy slump Normal 300 m Profits before interest 76, 000* 127 , 000 188 , 500| Interest Equity earnings Earnings per share Return on shares 19/0 Expected Outcome

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