Assume capital markets are perfect. Kay Industries currently has $$100$ million invested in$$ short$-$term Treasury securities paying $6\%,$ and it pays out the interest payments on these securities as a dividend. The board is considering selling the Treasury securities and paying out the proceeds as a$$ one$-$time dividend payment. Assume that Kay must pay a corporate tax rate of $30\%,$ and investors pay no taxes.

a$.$ If the board went ahead with this$$ plan, what would happen to the value of Kay stock upon the announcement of a change in$$ policy?

b$.$ What would happen to the value of Kay stock on the$$ ex$-$dividend date of the$$ one$-$time dividend?

c$.$ Given these price$$ reactions, will this decision benefit$$ investors?