Question: Canyon Buff Enterprise (CDE) is choosing between financing itself with only equity or with debt and equity. Regardless of how it finances itself, the EBIT

Canyon Buff Enterprise (CDE) is choosing between financing itself with only equity or with debt and equity. Regardless of how it finances itself, the EBIT for CDE will be $150 million. If CDE does use debt, the interest expense will be $15 million. If CDEs corporate tax rate is 25%, how much will CDE pay in total to ALL investors if it uses both debt and equity?

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