Dodge Used Auto World, Inc. earned exist118, 500,000 million last year and paid out 40 percent of earnings in dividends. a. By how much did the company's retained earnings increase? b. With 12 million shares outstanding and stock price of exist81, what was the dividend yield? c. Based on the information given, what is the firm's Retention Ratio'? Dann, Inc. is considering a cash acquisition of Bush, Inc. for exist160,000,000. Bush, Inc. will provide the following pattern of cash inflows and synergistic benefits for the next 15 years. There is no tax loss carryforward. The cost of capital for the acquiring firm is 12 percent. Should the merger be undertaken? (If you have difficulty with deferred time value of money problems, consult Chapter 9.)