MM with no taxes - QRT Co. and HOP Co. are identical firms in all respects except for their capital structure. QRT is all-equity financed with $500,000 in stock. HOP uses both stock and perpetual debt; its stock is worth $250,000 and the interest rate on its debt is 10 percent. Both firms expect EBIT to be $85,000. Ignore taxes. Ms. Paulson owns $30,000 worth of HOPs stock. Ms. Paulson wishes to generate exactly the same cash flows and rate of return by investing $30,000 in QRT and using the homemade leverage. How much is total income from her portfolio?