The Smith Brothers Pharmaceutical Company has $$250,000$ in excess cash and is considering

two alternatives. One is to pay the extra cash in the form of a dividend to their stockholders. The

other is to invest the cash in a T$-$Bill paying $5\%$ interest after$-$tax, and then distribute the cash as

a dividend. The firm's stockholders can also invest in the T$-$Bill for the same yield. If the

corporate tax rate is $30\%$ and the personal tax rate is $30\%,$ which alternative would you

recommend? $($Show why!$)$ If the corporate tax rate was $40\%,$ what should you recommend?