Assume that a firm has earned $100 of before-tax income. The corporate tax rate is 35 percent.

a. If the security used to finance the investment is $1,000 of 10 percent debt, the firm holding the debt (supplying the debt capital) will have _______________ after tax.

b. If the security used to finance the investment is $1,000 of common stock and if the entire after-tax amount of income is paid as a dividend, the zerotax investor holding the common stock will have _______________ after tax.