The basic accounting equation is Total Assets $=$ Total Liabilities $+$ Total Equity.

There are two companies A and B$.$ Both have same amount of total assets of $$100,000.$ A is totally financed by equity with no debt $($liabilities$).$ Firm B has $30\%-$ $$30,000$ financed by debt $($liabilities$)$ and $70\%-$ &$70,000$ with equity, and it has to pay $5\%$ annual interest to the lender for the $$30,000$ it has borrowed. At end of the year both companies make $$10,000$ of operating income $($EBIT$).$ Tax rate of $20\%$ applies to both companies.

Which owner, the owner of firm A or firm B$,$ receives more financial benefit then the other? Why?