Problem 16-16 Tax Shields (LO2) River Cruises is all-equity-financed with 58,000 shares. It now proposes to issue $330,000 of debt at an interest rate of 10% and to use the proceeds to repurchase 33,000 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. $83,000 b.$108,000 c.183,000