iver Cruises is all$-$equity$-$financed with $100,000$ shares. It now proposes to issue $$150,000$ of debt at an interest rate of $10\%$ and use e proceeds to repurchase $15,000$ shares at $$10$ per share. Profits before interest are expected to be $$115,000.$

a$.$ What is the ratio of price to expected earnings for River Cruises before it borrows the $$150,000?$ Note: Do not round intermediate calculations.

Price$-$earnings ratio

b$.$ What is the ratio after it borrows?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Price$-$earnings ratio