Use the Following Information to Answer the Question(s)below

question 4

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.

---

Definitions:

Emotional Extremes

Intense forms of feelings that are significantly beyond the normal range of emotions.

Paranoia

A mental condition characterized by delusions of persecution, unwarranted jealousy, or exaggerated self-importance, typically developing without external provocation.

Flat Affect

A severe reduction in emotional expressiveness, often observed in schizophrenia.

Self-fulfilling Prophecies

Situations where an individual's expectations or beliefs bring about outcomes that confirm those expectations.