Question: HI how do I 'm looking at the linear tech case and trying to understand if linear were to pay out its entire cash balance

how do I 'm looking at the linear tech case and trying to understand if linear were to pay out its entire cash balance as a special dividend , what is the effect on value / share price/ earnings / price per share and the same parameters if it did a share repurchase. they tell me to assume a 3% interest rate. I don't understand where the interest rate comes into play?

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