a. After completing its capital spending for the year, H Manufacturing has $1,000 extra cash. Hs managers must choose between investing the cash in Treasury bonds that yield 8% or paying the cash out to investors who would invest in the bonds themselves. i. If the corporate tax rate is 35%, what personal tax rate would make the investors equally willing to receive the dividend or to let H invest the money? ii. Is the answer to part i) reasonable? Explain. b. The desire for high current income is a valid explanation of preference for high current dividend policy. Comment on the validity of this statement.