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Unlevered and Levered Earnings Scotts Miracle-Gro Company had earnings before interest and taxes (EBIT) of $300 million and interest expense of $50 million in 2015.

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Unlevered and Levered Earnings Scotts Miracle-Gro Company had earnings before interest and taxes (EBIT) of $300 million and interest expense of $50 million in 2015. Given a corporate tax rate of 35%, what is Scotts net income with leverage and what would it be without leverage? What are payouts to investors of the firm in the two cases

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