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hom River Cruises is all-equity-financed with 56,000 shares. It now proposes to issue $310,000 of debt at an interest rate of 10% and to use

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hom River Cruises is all-equity-financed with 56,000 shares. It now proposes to issue $310,000 of debt at an interest rate of 10% and to use the proceeds to repurchase 31,000 shares. Suppose that the corporate tax rate is 21%. Calculate the dollar increase in the combined after-tax income of its debt-holders and equity-holders if profits before interest are: (Do not round intermediate calculations.) ed Increase in Cash Flow -ok Rive at al corp debt a. $ b. $ $ 81.000 106,000 181,000 c. CA int encos

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