River Cruises is all$-$equity$-$financed with $100,000$ shares. It now proposes to issue $$190,000$ of debt

at an interest rate of $10\%$ and use the proceeds to repurchase $19,000$ shares at $$10$ per share.

Profits before interest are expected to be $$119,000.$

a$.$ What is the ratio of price to expected earnings for River Cruises before it borrows the

$$190,000?$

Note: Do not round intermediate calculations.

Price$-$earnings ratio

b$.$ What is the ratio after it borrows?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Price$-$earnings ratio