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What is the total payout to investors

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Corporate Debt. Haricot Corp. and Pinto Corp. both have profits of $100 million. Haricot is financed solely by equity, while Pinto has issued $150 million of 8% debt. If the corporate tax rate is 21%:

a. How much tax does each company pay?

b. What is the total payout to investors (debtholders plus shareholders) of each company?

Reference no: EM133116752

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