$2.$ National Business Machine Co$.($NBM$)$ has $$4\mathrm{.}9$ million of extra cash after taxes have been paid. NBM has two choices to make use of this cash. One alternative is to invest the cash in financial assets. The resulting investment income will be paid out as a special dividend at the end of three years. In this case, the firm can invest in either Treasury bills yielding $3\%$ or $5\%$ preferred stock. IRS regulations allow the company to exclude from taxable income $70\%$ of the dividends received from investing in another company's stock. Another alternative is to pay out the cash now as dividends. This would allow the shareholders to invest on their own in Treasury bills with the same yield or in preferred stock. The corporate tax rate is $21\%.$ Assume the investor has a $31\%$ personal income tax rate, which is applied to interest income and preferred stock dividends. The personal dividend tax rate is $15\%$ on common stock dividends. Should the cash be paid today or in three years? Which of the two options generates the highest after$-$tax income for the shareholders?