Consider 1 year of a utility company's financial results. The company pays income tax of \(\$ 5,500,000\), where the tax rate is 40 percent. Debt is \(\$ 70,000,000\) and the interest rate on debt is 10 percent. Depreciation for financial accounting is \(\$ 8,000,000\). The initial investment was \(\$ 200,000,000\), and the MACRS(20) tax rate is \(5.285 \%\). Total annual cost before income taxes is \(\$ 37,000,000\).

a. How much money is paid to interest on debt?

b. What is the financial depreciation charge?

c. What is the tax depreciation charge?

d. What is the annual expense?

e. What is the amount of the return to owners?

f. What are the total revenue requirements for this year?