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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.
tableData,,,,,,Number of sharesPrice per share,$Market value of sharesMarket value of debtOutcomesState of the EconomySlump,Normal,BoomProfits before interest,$$$InterestEquity earningsEarnings per shareReturn on shares,,,,,
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