Assume perfect capital markets. Kay industries currently has $100 million invested in short-term Treasury securities paying 7%, 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. A) If the board went ahead with this plan, what would happen to the value of Kay stock upon the announcement of change in policy? 1. it is difficult to tell because the price reaction depends on investor preferences 2.the value of Kay would rise by $100 million 3.The value of Kay would fall by $100 million 4. the value of Kay would remain the same B) What would happen to the value of Kay stock on the ex-dividend date of the one-time dividend? 1. The value of Kay would fall by$100million 2.The value of Kay would remain the same 3.It's difficult to tell because the price reaction depends on investor preferences 4. The value of Kay would rise by $100 million C) Given these reactions, will this decision benefit investors? 1. It will benefit investors 2. It will neither benefit nor hurt investors 3. It's difficult to tell because the price reaction depends on investor preferences 4. It will hurt investors