a. What is the relative tax advantage of corporate debt if the corporate tax rate is T_c = 0.24, the personal tax rate is T_p = 0.24, but all equity income is received as capital gains and escapes tax entirely (T_pE = 0)? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

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 32%?