<br/><br/>​d'Anconia Copper has​ $200 million in cash that it can

use for a share repurchase. Suppose instead that​ d'Anconia Copper invests the funds in an account paying​ 5% interest for one year. Assume that the corporate tax rate is​ 21%, the individual capital gains rate is​ 15% and the individual rate on ordinary income is​ 32%.
Suppose that​ d'Anconia Copper retained the​ $200 million in cash so that it would not need to raise new funds from outside investors for an expansion it has planned for next year. If it did raise new​ funds, it would have to pay issuance fees. Assuming that these fees can be expensed for corporate tax​ purposes, the amount that​ d'Anconia Copper needs to save in issuance fees to make retaining the cash beneficial for its investors is closest​ to: