River Cruises is all-equity-financed with 100,000 shares. It now proposes to issue $150,000 of debt at an interest rate of 10% and use the proceeds to repurchase 15,000 shares at $10 per share. Profits before interest are expected to be $115,000. a. What is the ratio of price to expected earnings for River Cruises before it borrows the $150,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the ratio after it borrows?