need part a and part b

P16-12 (similar to) Related to Checkpoint 16.1) (Dividend irrelevance of the timing of cash dividends) The Caraway Seed Company sells speciaity gardening seeds and products primarily to mail-order the end of one year, at which timeit will be prepared to pay a liquidating dividend of $1.34 million to the frm's stockholders. The firm's shareholders require a 9.6 percernt rate of return for investing in the all-equity-financed firm. a. What do you estimate the value of Caraway's equity to be today if it pays out a $216,000 cash dividend today and plans to pay a $1.34 million liquidating dividend at the end of the year? b. If Caraway's raise the additional $387,000 it needs to make the cash dividend, what will be the value of the existing shares of stock? The new shares? and Internet customers. The firm has $216,000 available for distribution as a cash dividend immediately and plans to shut down its business at s board of directors decides to pay a $603,000 dividend today to its existing shareholders using an equity offering selling new shares of common stock to a. The value of Caraway's equity today if t pays out a $216.000 cash dividend today and plans to pay a $1.34 million liquidating dividend at the end of the year is s Round to the nearest dollar.)