Clovix Corporation has $60.32 million in​ cash, 10.4 million shares​ outstanding, and a current share price of $33 . Clo

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Clovix Corporation has $60.32 million in​ cash, 10.4 millionshares​ outstanding, and a current share price of $33 . Clovix isdeciding whether to use the 60.32 million to pay an immediatespecial dividend of $5.80 per​ share, or to retain and investit at the​ risk-free rate of 10% and use the $6.03 million ininterest earned to increase its regular annual dividend of pershare. Assume perfect capital markets.
a. Suppose Clovix pays the special dividend. How can ashareholder who would prefer an increase in the regular dividendcreate it on her​ own?
b. Suppose Clovix increases its regular dividend. How can ashareholder who would prefer the special dividend create it on her​own?
Suppose Clovix pays the special dividend. How can a shareholderwho would prefer an increase in the regular dividend create it onher​ own?  ​(Select the best choice​ below.)
A.Sell a share of Clovix stock for $33 today and invest theproceeds to earn $3.30 in interest.
B.Borrow $33 today and use it to buy a share of Clovixstock.
C.Borrow $5.80 today and use the increase in the regulardividend to pay the interest of$0.58 per year on the loan.
D.Invest the $5.80 special dividend and earn interest of $0.58per year.
Part 2
b. Suppose Clovix increases its regular dividend. How can ashareholder who would prefer the special dividend create it onher​ own?  ​(Select the best choice​ below.)
A.Invest the $5.80 special dividend and earn interest of $0.58per year.
B.Borrow $5.80 today and use the increase in the regulardividend to pay the interest of $0.58 per year on the loan.
C.Sell a share of Clovix stock for $33 today and invest theproceeds to earn $3.30 in interest.
D.Borrow $33 today and use it to buy a share of Clovixstock.