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Suppose MicrosoftMicrosoft has 8.298.29 billion shares outstanding and pays a marginal corporate tax rate of 35 %35%. If MicrosoftMicrosoft announces that it will pay out
Suppose MicrosoftMicrosoft has 8.298.29 billion shares outstanding and pays a marginal corporate tax rate of 35 %35%. If MicrosoftMicrosoft announces that it will pay out $4343 billion in cash to investors through a combination of a special dividend and a share repurchase, and if investors had previously assumed MicrosoftMicrosoft would retain this excess cash permanently, by how much will MicrosoftMicrosoft's share price change upon the announcement?
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