Peterson Corporation and Patterson Corporation Each Have EBIT of $4

Peterson Corporation and Patterson Corporation each have EBIT of $4 million.Peterson has no debt and no interest expense; Patterson has $2 million in debt at a before-tax rate of 8%.The tax rate is 40%.How much cash does each firm return to its investors?

A) Peterson $2,400,000, Patterson $2,144,000
B) Peterson $2,400,000, Patterson $2,240,000
C) Peterson $2,400,000, Patterson $2,464,000
D) Peterson $2,400,000, Patterson $2,304,000