a$.$ What is the relative tax advantage of corporate debt if the corporate tax rate is $T_c=0\mathrm{.}22,$ the personal tax rate on interest is

$T_{pD}=0\mathrm{.}37,$ but all equity income is received as capital gains and escapes tax entirely $(T_{pE}=0)?$

b$.$ How does the relative tax advantage change if the company decides to pay out all equity income as cash dividends that are

taxed at $10\%?$

Note: Do not round intermediate calculations. Round your answers to $4$ decimal places.