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In: AccountingCerner Corporation announced a first-come, first-serve stockrepurchase offer to its shareholders – the company agreed...Cerner Corporation announced a first-come, first-serve stockrepurchase offer to its shareholders – the company agreed torepurchase 2,653,780 shares of its common stock in exchange fortotal consideration of $173,434,000. Cerner had 329,641,500 totalshares outstanding before the redemption. You acquired 16,482,075shares of Cerner's stock two years ago for $20/share. You were theonly shareholder to participate in the repurchase offer and Cerneragreed to redeem the total number of shares directly from you.Using the applicable tax rates provided below, compute yourafter-tax savings if the redemption is treated as an exchange asopposed to a dividend distribution. Any dividend income amountsshould be considered ordinary income in character. For purposes ofthe after-tax savings calculation, you should assume you are liablefor the net investment income tax on both capital gains anddividend income. Applicable tax rates: Individual - ordinary income- 34% Individual - long-term capital gains - 20% Individual - netinvestment income - 3.8%