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Number of shares Price per share Market value of shares Current Data 1ee, ebe le $1,000,eee Outcomes State of the Economy Slump Normal Boom $

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Number of shares Price per share Market value of shares Current Data 1ee, ebe le $1,000,eee Outcomes State of the Economy Slump Normal Boom $ 73,750 $ 122,500 $ 184,eee Profits before interest Suppose it now issues $250,000 of debt at an interest rate of 10% and uses the proceeds to repurchase 25,000 shares. Assume tham 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 (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.) Data Number of shares $ 10 Price per share Market value of shares Market value of debt Outcomes State of the Economy Slump Normal 73,750 $ 122,500 $ Boom 184,000 $ Profits before interest Interest Equity earnings Earnings per share Return on shares Expected Outcome

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