Cash flow available to shareholders from dividend vs delayed dividend?

What's the answer for 3a and 3b? I got 1,000,464.79 for a.) and 1,070,542.2 for b.) but I'm not sure if this is correct

ons 2a) through 2(d). Largo Transport Inc. $o00 12/31/07 Assets 606,200 Current Liabilities Long term debt Preferred stock* Common stockholders' equity Total liabilities and equity 101,200 50,000 0,000 405,000 606,200 *Interest rate 9.5%, annual sinking fund 3,000 ** Dividend rate 10%; five hundred thousand shares Plcase note (a) Calculate the EPS in 2008 under each of the three alternatives (b) i. Calculate the breakeven level of EBIT for bonds versus comm on stock. ii. Show the EPS at the breakeven level of EBIT. ii. Explain why the EPS for the debt alternative is higher than that of the common stock alternative at EBIT levels higher than breakeven. No more than 30 words. Strict limit. (c) Set up and discuss the breakeven level of EBIT for bonds versus preferred stock. No more than 20 words. Strict limit. (d) Set up the times common covered (TCC) ratio for bonds, but don't calculate it 3.30 Points. The Matrix Company has just received $1,000,000 extra cash because it won a lawsuit against another firm. There are no corporate income taxes due on this gain. Matrix can retain this money and invest in a US government bond fund yielding 9% annually, or it can pay the cash now to shareholders as a special dividend. Shareholders can alsoi nvest in the U.S. Government bond fund yielding 9% annually. Interest income is compounded annually. The corporate tax rate is 40%, the personal tax rate dividend income is 15%, and the personal tax rate on all other income is 30%. a) How much cash after any personal and corporate taxes will shareholders have 3 years from now if the firm keeps the cash, invests in the government bond fund for 3 years and then p a dividend to shareholders at the end of the 3rd year? [Note: you can use an after-tax yield or a before-tax yield and take out the taxes] b) How much cash after any personal and corporate taxes will shareholders have 3 years from now if the firm pays the dividend now to shareholders and they invest in the U.S. Gov bond fund? c) Based upon your calculations, is (a) or (b) better for shareholders? d) Assume that the firm makes decisions on behalf of shareholders. How does the size of the personal tax ra affect the firm's incentive to pay out excess cash as dividends to shareholders? Answer in no more than 20 words. (paid by shareholders) on ays overnment te on other (non-dividend) income relative to the size of the corporate tax rate