Question: of HP Software and Technologies Ltd. and First Computers Ltd. are the two software and technologies companies. Both the companies have same earnings before interest

of HP Software and Technologies Ltd. and First Computers Ltd. are the two software and technologies companies. Both the companies have same earnings before interest and taxes of $1,500,000 each. They are alike in all respects except that HP Software and Technologies Ltd uses 13 per cent debt of $2,000,000; First Computers Ltd. does not use debt in the capital structure. Given the corporate tax rate of 30 per cent. Income available for debt-holders and equity-holders are a. HP Software and Technologies Ltd $ 740,500; First Computers Ltd. $ 640,500 b. None of the above C. d. HP Software and Technologies Ltd $745,500; First Computers Ltd. $ 645,500 HP Software and Technologies Ltd $755,000; First Computers Ltd. $ 650,000

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