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River Cruises is all - equity - financed. Suppose it now issues $ 2 5 0 , 0 0 0 of debt at an interest
River Cruises is allequityfinanced.
Suppose it now issues $ of debt at an interest rate of and uses the proceeds to
repurchase 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.
Note: Do not round intermediate calculations. Round "Earnings per share" to decimal
places. Enter "Return on shares" as a percent rounded to decimal places.
Answer is complete but not entirely correct.
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