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River Cruises is all - equity - financed with 1 0 0 , 0 0 0 shares. It now proposes to issue $ 2 5
River Cruises is allequityfinanced with shares. It now proposes to issue $ of debt at an interest rate of and to use the proceeds to repurchase shares. Suppose that the corporate tax rate is Calculate the dollar increase in the combined aftertax income of its debtholders and equityholders if profits before interest are:
Note: Do not round intermediate calculations.
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