EALNCIULU 1. Scenario Analysis. Consider the following scenario analysis: Rate of Return Probability Scenario Bonds Stocks Recession 0.30 -2% +14% +12 Normal economy 0.40 +20 Boom 0.30 +7 +8 Market SR of 25%. Calculate Beta. (1 point) 4. River Cruises is all-equity-financed. Suppose it now issues interest rate of 10% and uses the proceeds to repurchas the firm pays no taxes and that debt finance has no impact on showed below by selecting values per each sce earnings per share and share return vary with operating income a now issues $ 450,000 of debt at an proceeds to repurchase 45.000 shares. Assume that s no impact on firm value. Rework s per each scenario and account to show how operating income after the financing. Current Data Number of shares 100,000 Price per share $10 Market value of shares $1 million Slump $100,000 Outcomes Normal $150,000 Boom $200,000 State of the Economy Profits before interest Interest Equity earnings Earnings per share Return on shares (5 points)