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River Cruises is all-equity-financed with 46,000 shares. It now proposes to issue $210,000 of debt at an interest rate of 10% and to use the proceeds to repurchase 21,000 shares. Suppose that the corporate tax rate is 35%. Calculate the dollar increase in the combined after-tax income of its debtholders and equityholders if profits before interest are: Increase in Cash Flow a. $71,000 b.$96,000 C.$171,000

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