A firm having an extra cash for Rs 1,000 has two options. One is that it can invest in treasury bills having a yield of 10%. The other option is that it can distribute this amount as dividend to...

A firm having an extra cash for Rs 1,000 has two options. One is that it can invest in treasury bills having a yield of 10%. The other option is that it can distribute this amount as dividend to shareholders who can invest the dividend the same way. Suppose the corporate tax is 32%, the personal income tax is 30% and the tax on dividend is 15%. Find out how much cash the investors will have after 3 years under these two different policies.