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Check my wor River Cruises is all-equity-financed with 49,000 shares. It now proposes to issue $240,000 of debt at an interest rate of 12% and

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Check my wor River Cruises is all-equity-financed with 49,000 shares. It now proposes to issue $240,000 of debt at an interest rate of 12% and to use the proceeds to repurchase 24,000 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. $ 74,000 b. S 99,000 c. $174,000

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