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Business, 02.07.2021 21:10 heavendl13

River Cruises is all-equity-financed with 42,000 shares. It now proposes to issue $170,000 of debt at an interest rate of 10% and to use the proceeds to repurchase 17,000 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

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River Cruises is all-equity-financed with 42,000 shares. It now proposes to issue $170,000 of debt a...
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