Suppose you are an employee of Pactruck who just received I0,000 shares of restricted stock that vest in 4 years. Your current and expected tax rate on ordinary income is 35% and on capital gains is 20%. The stock is currently trading at $15 and you expect it to appreciate at 25% per annum over the next 4 years. You face an after-tax borrowing rate of 7%. You plan on selling the stock as soon as it vests. Should you simply hold the restricted stock through vesting and sell at that time or make a Section 83(b) election? As an alternative to the Section 83(b) election, you consider borrowing and purchasing additional stock using the money you would have used to pay the taxes on the Section 83(b) election. Evaluate this alternative. Discuss any nontax costs associated with a Section 83(b) election and the alternative borrow-and buy additional stock strategies. What is the ex post outcome if the stock price appreciates at 15% per annum? At 10% per annum? Fails to appreciate at all? Declines by 5% per annum?