How much tax does each company pay

Assignment Help Financial Management

Reference no: EM131886489

Haricot Corp. and Pinto Corp. both have profits of $115 million. Haricot is financed solely by equity, while Pinto has issued $165 million of 8% debt. If the corporate tax rate is 35%:

a. How much tax does each company pay? (Round your answers to 1 decimal places.)

b. What is the total payout to investors (debtholders plus shareholders) of each company? (Round your answer to 1 decimal places.)

Reference no: EM131886489

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