A January 31 announcement to shareholders of Premier Financial, a California savings and loan company, stated that the company had good news for stockholders. The announcement went on to explain that the board raised the quarterly cash dividend 12% and then declared a five-for-four stock split in the form of a 25% stock dividend. The additional shares were to be distributed on March 15 to shareholders of record on February 15. On March 16, the board approved a merger between Premier Financial and a large U.S. steel company. The agreement called for a cash payment of $33.60 on each outstanding United Financial share. The original offer (in early February) was $42 per share for the 5.8 million shares outstanding. 1. As a recipient of the letter of January 31, you were annoyed by the five-for-four stock split. Prepare a letter to the chairman indicating the reasons for your displeasure. 2. Prepare a response to the unhappy shareholder in requirement 1. 3. A shareholder of Premier Financial wrote to the chairman in early March: Im confused about the change in the agreed upon price per share. I owned 100 shares and thought Id receive $4,200. Now the price has dropped from $42.00 to $33.60. Prepare a response to the shareholder.