asked 116k views
5 votes
Harris Corporation has ​$407 million in​ cash, and 116 million shares outstanding. Suppose the corporate tax rate is 32% and investors pay no taxes on​ dividends, capital​ gains, or interest income. Investors had expected Harris to pay out the $407 million through a share repurchase. Suppose instead that Harris announces it will permanently retain the​ cash, and use the interest on the cash to pay a regular dividend. If there are no other benefits of retaining the​ cash, how will​ Harris' stock price change upon this​ announcement?

asked
User Eli Iser
by
8.7k points

1 Answer

2 votes

Answer:

369

Step-by-step explanation:

407x116=369

answered
User Ken Wootton
by
8.0k points
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