Screen shot attached.

River Cruises is allequityfinanced with 100,000 shares. It now proposes to issue $300,000 of debt at an interest rate of 12% and use the proceeds to repurchase 30,000 shares at $10 per share. Profits before interest are expected to be $130,000. a. What is the ratio of price to expected earnings for River Cruises before it borrows the $300,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Prioe-eamings ratio [ I b. What is the ratio after it borrows? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Prioe-eamings ratio [