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River Cruises is all - equity - financed with 1 0 0 , 0 0 0 shares. It now proposes to issue $ 1 5
River Cruises is allequityfinanced with shares. It now proposes to issue $ of debt at an interest rate of and use the proceeds to repurchase shares at $ per share. Profits before interest are expected to be $
A What is the ratio of price to expected earnings for River Cruises before it borrows the $
Note: Do not round intermediate calculations.
BWhat is the ratio after it borrows?
Note: Do not round intermediate calculations. Round your answer to decimal places.
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