Multiple Choice
Use the following information to answer the question(s) below.
d'Anconia Copper has $200 million in cash that it can use for a share repurchase.Suppose instead that d'Anconia Copper invests the funds in an account paying 5% interest for one year.Assume that the corporate tax rate is 21%,the individual capital gains rate is 15% and the individual rate on ordinary income is 32%.
-Net of ordinary income taxes,the amount that investors would have if they invested the $200 million on their own is closest to:
A) $5.5 million.
B) $6.5 million.
C) $6.8 million.
D) $10.0 million.
Correct Answer:

Verified
Correct Answer:
Verified
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