(e) Clovix Corporation has $285 million in cash and 140 million shares outstanding. Suppose the corporate tax rate is 35% and investors pay no taxes on dividends, capital gains, or interest income. Investors had expected Clovix to pay out the $285 million through a share repurchase. Suppose instead that Clovix announces it will permanently retain the cash and the cash will generate interest incomes. Assume tax is the only market imperfection. If there are no other benefits of retaining the cash, how will Clovix' stock price change upon this announcement? (4 marks) e e 1. 1