Save Score: 0 of 1 pt 13 of 26 (0 complete HW Score: 0% 0 of 26 pts P 17-13 (similar to) Question Help You manage a tro) pension fund that is invested in KOA Corporation KOS magers have just wounced that they expectedly generated at $50 milion in cash flow this year they are coming as a special dividend or investing it in one year Treasury securities that wil um 11 over the year. They would then be the million plus interest owned as a special dividend pay a corporate tax ale would you prefer they pay the $50 million as a speciw dividend now or wait a you? IF KOA pays the special dividend immediately, you can then choose to invest in the same are your curties and milion Pound to two decimal places) Juure! U of 1 pt 14 of 25 (complete HW Score: 0% 0 of 26 pts P 17-14 (book/static) Question Help Assume perfect capital markets. Kay Industries currently has $100 milion invested in shortcom Treasury securities paying, and it pays out the interest payments on these securities as a dividend The board is coming Selling the Treasury securities and paying out the proceeds as a one-time dividend payment all the board went ahead with this plan, what would happen to the value of Kay stock upon the amouncement of a change in policy? b. What would happen to the value of Kay stock on the dividend date of the one time divided c. Given these price reactions will this decision benefit investors? 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? Select the best choice below) O A The value of Kay would rise by $100 milion OB. The value of Kay would remain the same OC. It's difficult to tell because the price reaction depends on investor preferences OD. The value of Kay would fall by $100 million