Harris Corporation has $$250$million in cash, and $100$million shares outstanding. Suppose the corporate tax rate is $35\%,$and investors pay no taxes on dividends, capital gains, or interest income. Investors had expected Harris to pay out the $$250$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.

$**$Assume investors pay a $15\%$tax on dividends but no capital gains taxes or taxes on interest income, and Harris Co does not pay corporate taxes.$**$

If there are no other benefits of retaining the cash, how will Harris's stock price change upon this announcement?

$**$ do remember to take into account the $15\%$ dividend tax