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River Cruises is all-equity-financed with 54,000 shares. It now proposes to issue $290,000 of debt at an interest rate of 10% and to use the

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River Cruises is all-equity-financed with 54,000 shares. It now proposes to issue $290,000 of debt at an interest rate of 10% and to use the proceeds to repurchase 29,000 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 POP S $ $ 79,000 104,000 179,000

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