long term investment . problems attached I need a solution with a details calculation

Problem 19-20 Dividends versus Reinvestment After completing its capital spending for the year, Carlson Manufacturing has $2,700 extra cash. Carlson's managers must choose between investing the cash in Treasury bonds that yield 6 percent or paying the cash out to investors who would invest in the bonds themselves. a. If the corporate tax rate is 39 percent, what personal tax rate would make the investors equally willing to receive the dividend or to let Carlson invest the money? (Do not round intermediate calculations.) Personal tax rate 39 % b. Is the answer to (a) reasonable? Yes No c. Suppose the only investment choice is a preferred stock that yields 13 percent. The corporate dividend exclusion of 70 percent applies. What personal tax rate will make the stockholders indifferent to the outcome of Carlson's dividend decision? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Personal tax rate % d. Is this a compelling argument for a low dividend payout ratio? Yes No Problem 29-18 Mergers and Shareholder Value The Chocolate Ice Cream Company and the Vanilla Ice Cream Company have agreed to merge and form Fudge Swirl Consolidated. Both companies are exactly alike except that they are located in different towns. The end-of-period value of each firm is determined by the weather, as shown below. There will be no synergy to the merger. State Rainy Warm Hot Probability Value .1 $ 320,000 .4 500,000 .5 980,000 The weather conditions in each town are independent of those in the other. Furthermore, each company has an outstanding debt claim of $500,000. Assume that no premiums are paid in the merger. a. What are the possible values of the combined company? (Do not round intermediate calculations.) Possible states Rain-Rain Joint Value $ Rain-Warm Rain-Hot Warm-Warm Warm-Hot Hot-Hot b. What are the possible values of end-of-period debt values and stock values after the merger? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.) Rain-Rain Rain-Warm Rain-Hot Warm-Warm Warm-Hot Hot-Hot Debt Value $ Stock Value $ c. How much do stockholders and bondholders each gain or lose if the merger is undertaken? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations ) Bondholder gain/loss Stockholder gain/loss $ $ 0 Problem 29-12 Effects of a Stock Exchange Consider the following premerger information about Firm A and Firm B: Total earnings Shares outstanding Price per share Firm A $ 1,500 900 $ 33 Firm B $ 1,100 250 $ 37 Assume that Firm A acquires Firm B via an exchange of stock at a price of $39 for each share of B's stock. Both A and B have no debt outstanding. a. What will the earnings per share, EPS, of Firm A be after the merger? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) $ EPS b. What will Firm A's price per share be after the merger if the market incorrectly analyzes this reported earnings growth (that is, the price-earnings ratio does not change)? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Price per share $ c. What will the price-earnings ratio of the postmerger firm be if the market correctly analyzes the transaction? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) times Price-earnings d-1. If there are no synergy gains, what will the share price of A be after the merger? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Price per share $ d-2. What will the price-earnings ratio be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Price-earnings times d-3. What does your answer for the share price tell you about the amount A bid for B? Was it too high? too low? Too high Too low