Question 4 River Cruises has the following market-value balance sheet. The stock currently sells for $10 a share and there are 2000 shares outstanding. The firm has two alternatives: 1. Pay a $1 per share cash dividend or, 2. Repurchase $2000 worth of stock. Assets Cash Fixed Assets $ 4,000 26,000 Balance Sheet Liabilities and Equity Debt $10,000 Equity 20,000 a) What will be the price per share under each alternative? b) If total earnings of the firm are $4000 a year, find the earnings per share under each alternative. c) Find the price-earnings ratio under each alternative.