River Cruises is all-equity-financed with 43,000 shares. It now proposes to issue $180,000 of debt at an interest rate of 12% and to use the proceeds to repurchase 18,000 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.	$68,000
b.	$93,000
c.	$168,000