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After completing its capital spending for the year, CarlsonManufacturing has $2,800 extra cash. Carlson’s managers must choosebetween investing the cash in Treasury bonds that yield 4 percentor paying the cash out to investors who would invest in the bondsthemselves.  a.If the corporate tax rate is 23 percent, what personal tax ratewould make the investors equally willing to receive the dividend orto let Carlson invest the money?b.Is the answer to(a) reasonable?YesNoc.Suppose the only investment choice is a preferred stock thatyields 7 percent. The corporate dividend exclusion of 50 percentapplies. What personal tax rate will make the stockholdersindifferent to the outcome of Carlson’s dividend decision?d.Is this acompelling argument for a low dividend-payout ratio?YesNo