3. Suppose there exists two firms, A and B in Kenyan financial market which are identical in all respects except the use of debt. Firm A is an all equity financed firm, with 2,000,000 dollars equity capital; while fimm L employs 500,000 dollars debt at a 15 per cent rate of interest. Both firms have expected earnings before interest and taxes of 75,000 dollars, pay corporate tax at 35% and distribute 100% earnings as dividends to shareholders. Both shareholders and lenders are required to pay 35% tax on their income As a financial analyst determine the total income to investors and interest tax shield for (10 Marks) levered, A, and unlevered, B, firms. END