Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. show your work, please :) problem 14-12 corpora

Show your work, please :) Problem 14-12 Corporate Debt (LO5) Haricot Corp....

50.1K

Verified Solution

Question

Finance

Show your work, please :)

image

Problem 14-12 Corporate Debt (LO5) Haricot Corp. and Pinto Corp. both have profits of $105 million. Haricot is financed solely by equity, while Pinto has issued $155 million of 6% debt. If the corporate tax rate is 30%; a. How much tax does each company pay? (Round your answers to 1 decimal places.) Tax Amount Haricot million Pinto million b. What is the total payout to investors (debtholders plus shareholders) of each company? (Round your answers to 1 decimal places.) Haricot Pinto Return to debtholders Return to shareholders Total return to investors$ million million 0.0 million 0.0$

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1.Review how patients who might benefit from Targeted therapies are identified. 2. Select one currently approved targeted...

Biology
Q

Describe your experience with espoused and theories-in-practice based on an organization where you work or that...

General Management
Q

98 From the image above select all of the statements that are true Select all...

Biology
Q

A body is rotating with angular velocity 20 rad s If its kinetic energy is...

Physics
Q

Home Properties is developing a subdivision that includes 330 home lots The 210 lots in...

Geometry
Q

When Milo went to register for classes at the last minute, the only classes left...

Basic Math
Q

Complete the following probability distribution table Probability Distribution Table X 20 49 53 80 P...

Statistics
Q

Please answer the following : Please answer Req 2. ...

Accounting
Q

19-37A (book/static) Qurbon Help Low Range produces feece jackets. The company es costing for its...

Accounting
Q

Accounting
Q

Not yet answered Marked out of Flag question 1.00 Cranberry Relish, Inc. has the following...

Accounting
Q

The balances below have been extracted from the accounting records of Lion Ltd at 31...

Accounting