Assume perfect capital markets. Kay Industries currently has 100 million invested in​ short-term Treasury securities pay

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Assume perfect capital markets. Kay Industries currently has 100million invested in​ short-term Treasury securities paying 7% ​,and it pays out the interest payments on these securities as adividend. The board is considering selling the Treasury securitiesand paying out the proceeds as a​ one-time dividend payment.
a. If the board went ahead with this​ plan, what would happen tothe value of Kay stock upon the announcement of a change in​policy?
b. What would happen to the value of Kay stock on the​ex-dividend date of the​ one-time dividend?
c. Given these price​ reactions, will this decision benefit​investors?
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Part 1 a. If the board went ahead with this​ plan, what wouldhappen to the value of Kay stock upon the announcement of a changein​ policy?  ​(Select the best choice​ below.)
A. The value of Kay would rise by 100 million.
B. The value of Kay would fall by 100 million.
C. The value of Kay would remain the same.
D. ​It's difficult to tell because the price reaction depends oninvestor preferences.
Part 2 b. What would happen to the value of Kay stock on the​ex-dividend date of the​ one-time dividend?  ​(Select the bestchoice​ below.)
A. ​It's difficult to tell because the price reaction depends oninvestor preferences.
B. The value of Kay would fall by 100 million.
C. The value of Kay would remain the same.
D. The value of Kay would rise by million.
Part 3 c. Given these price​ reactions, will this decisionbenefit​ investors?  ​(Select the best choice​ below.)
A. It will benefit investors.
B. It will neither benefit nor hurt investors.
C. ​It's difficult to tell because the price reaction depends oninvestor preferences.
D. It will hurt investors.