River Cruises is all-equity-financed with 40,000 shares. It now proposes to issue $150,000 of debt at an interest rate of 10% and to use the proceeds to repurchase 15,000 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.)

		Increase in Cash Flow
a.	$65,000
b.	$90,000
c.	$165,000