Question 5: BCD Inc. an all equity company it has 4 million common shares outstanding with a stock price of $75.00. The company has $50 million invested in T-bills that earn 8% compounded annually. The company pays out the after-tax interest payments on the T-bills as a dividend to its common shareholders. The corporate tax rate is 30%. Investors do not pay tax on their earnings (dividends, interest income or capital gains). The company announces that it is going to sell the T-bills and pay a special one time dividend of $12.50 per share. What will be the price of the company's common stock after the announcement of the special dividend? a) $75.00 b) $87.50 c) $62.50 d) $78.75 e) None of the above