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River Cruises River Cruises is al equity financed Cat Data huber of Sheres Price per share Market value of shares $1,000 State of the Econ
River Cruises
River Cruises is al equity financed Cat Data huber of Sheres Price per share Market value of shares $1,000 State of the Econ Profits before interest $ 76,750 128.100 110. Suppose it now issues $250,000 of debt at an interest rate of 10and uses the proceeds to repurchase 25 000 shares. Assume that the term pays no taxes and that debt finance has no impact on firm value. Refer to the above table to compute the missing data (Do not round intermediate calculations. Round "Earnings per shere" to 3 decimal places. Enter "Return on shares as a percent rounded to 2 decimal places) Market value of debt Poft baloneS 7505105 190.000Step by Step Solution
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