Metal is currently trading for $40 per share and is about to pay a $5 special dividend. And, the tax rate on dividend is 40%, the tax rate on capital gains is 20%. Suppose that Metal made a surprise announcement that it would do a share repurchase rather than pay a special dividend, the net tax savings per share for an investor that would result from this decision is closest to:

Select one:

a. $3.75

b. $4.00

c. $5.00

d. $1.25