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River Cruises is all-equity-financed. Current Data 100,000 Number of shares Price per share Market value of shares $1,000,008 10 State of the Economy Slump Normal

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River Cruises is all-equity-financed. Current Data 100,000 Number of shares Price per share Market value of shares $1,000,008 10 State of the Economy Slump Normal Boom Profits before interest 80,500 136,00e 197,50e Suppose it now issues $250,000 of debt at an interest rate of 10% and uses the proceeds to repurchase 25,000 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. (Do diate calculations. Round "Earnings per share" to 3 decimal places. Enter "Return on shares" as a percent rounded to 2 decimal places.)

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