How will harris stock price change upon the announcement

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Question: Harris Corporation has $322 million in cash, and 119 million shares outstanding. Suppose the corporate tax rate is 25%, and investors pay no taxes on dividends, capital gains, or interest income. Investors had expected Harris to pay out the $322 million through a share repurchase. Suppose instead that Harris announces it will permanently retain the? cash, and use the interest on the cash to pay a regular dividend. If there are no other benefits of retaining the cash, how will Harris' stock price change upon this announcement?

After the announcement? Harris' stock price will rise or fall? and by how much?

Reference no: EM131792825

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