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Lll open | g E, Q @331 | ,r 1 |-_|T- : Tools FiIIsSign Ftiuer Cruises is allequitynanced. Cm Dot: Number of shares 100,000 Price per share $ 10...

Please provide answers for the blank blocks (i.e. number of shares, market value shares, interest for all groups, etc. :Screen Shot 2018-05-04 at 8.31.30 PM.png  

Screen Shot 2018-05-04 at 8.31.30 PM.png

LU .Lll open | g E, Q @331 | ,r 1 |-_|T- : Tools FiIIsSign Ftiuer Cruises is all—equity—financed. .3. !. Cm Dot:
Number of shares 100,000
Price per share $ 10
Market value. of shmes$1,000,000
State of the EcrammI Slump Nomal Boom
Profits heforeintereeti 70350 110,500 ”3,000 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 tirm pays no
taxes and that debt finance has no impact on firm value- Fteter to the above table to mmpute the missing data. {Do not round intermediate calculations.
Round "Earnings per share" to 3 decimal places. Enter "Return on shares" as a percent rounded to 2 decimal places.) Nu mber of shares Price per share Market value of shares Market value of debt State ol the Economy Boom Profits before interest 1TB,000 Interest
Eouitjlr eamings
Eam'ngs per share Retum on shares Expected Umcome

Top Answer

Outcomes     Number of shares 75 , 000     Price per share $10     Market value of shares $750 , 000    ... View the full answer

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