This Question: 1 pt 6 of 11 (0 complete) This Quiz: 11 pts possible = (0) Clovix Corporation has $41, 16 million in cash, 98 million shares outstanding, and a current share price of $35 Clovix is deciding whether to use the $41. 16 million to pay an immediate special dividend of $4 20 per share, or to retain and invest it at the risk-free ments rate of 10% and use the $4.12 million in interest earned to increase its regular annual dividend of $0.42 per share. Assume perfect capital markets a. Suppose Clovix pays the special dividend. How can a shareholder who would prefer an increase in the regular dividend create it ments on her own? b. Suppose Clovix increases its regular dividend. How can a shareholder who would prefer the special dividend create it on her own? a. Suppose Clovix pays the special dividend. How can a shareholder who would prefer an increase in the regular dividend create it Chapter on her own? (Select the best choice below) O A Sell a share of Clovex stock for $35 today and invest the proceeds to earn $3.50 in interest Chapter B. Borrow $4 20 today and use the increase in the regular dividend to pay the interest of $0.42 per you on the loan OC. Invest the $420 special dividend and earn interest of $0.42 per year. OD. Borrow $35 today and use it to buy a share of Clovix stock Practice b. Suppose Clovix increases its regular dividend How can a shareholder who would prefer the special dividend create it on her own? (Select the best choice below) Ipts ssignmen Click to select your