Suppose the board of a company decides

Suppose the board of a company decides to invest $250 million of cash in one-year government bills yielding 4% and use the proceeds from the sale of the bills to pay higher dividend next year. A. What would be the company’s share price in this case? B. Compare the share price with DD for dividend to the share price when the $250 million is immediately paid out in dividends. What can you conclude?

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