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Haricot Corp. and Pinto Corp. both have operating profits of $145 million. Haricot is financed solely by equity, while Pinto has issued $195 million of

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Haricot Corp. and Pinto Corp. both have operating profits of $145 million. Haricot is financed solely by equity, while Pinto has issued $195 million of 8% debt. If the corporate tax rate is 35%: Required: a. How much tax does each company pay? b. What is the total payout to investors (debtholders plus shareholders) of each company? Complete this question by entering your answers in the tabs below. Required A Required B How much tax does each company pay? (Enter your answers in million rounded to 1 decimal place.) Tax Amount million Haricot Pinto million What is the total payout to investors (debtholders plus shareholders) of each company? (Enter your answers in million rounded to 1 decimal place.) Haricot Pinto Return to debtholders million Return to shareholders million Total return to investors million

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