At a Time When the Corporate Tax Rate Is 22

At a time when the corporate tax rate is 22%, the government has raised taxes on individuals to 43% to meet its fiscal needs. The dividend tax rate is 32%. Interest rates are 8%. Which of the following applies to LED Ltd.'s dividend policy?

A) Shareholders would be better off by $31.08 per $1,000 of dividends if LED paid the dividend now and the investor invested the money.
B) Shareholders would be better off by $62.40 per $1,000 of dividends if LED paid the dividend now and the investor invested the money.
C) Shareholders would be indifferent as to whether LED deferred the dividend for 1 year and invested the money itself.
D) Shareholders would be better off by $20.67 per $1,000 of dividends if LED deferred the dividend for 1 year and invested the money itself.
E) Shareholders would be better off by $11.42 per $1,000 of dividends if LED deferred the dividend for 1 year and invested the money itself.