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On 8 February 2021, Teslas CEO and Technoking Elon Musk announced that Tesla had bought USD1.5 billion of Bitcoin. Alyse Killeen said The announcement that Tesla has diversified its treasury through the addition of bitcoin is not surprising, nor is the assuredness implied by an 8% allocation of cash-on-hand. Equal to Teslas R&D expenditure for 2020, this investment is significant to the Company and shows a commitment to maximizing shareholder returns Tesla invests heavily in research and development (R&D) and has never paid a dividend or conducted a share buyback. Which of the following statements is NOT correct?

Select one: a. If shareholders thought Bitcoin was a better investment than Tesla, they would have bought Bitcoin themselves rather than Tesla stock.

b. Teslas Bitcoin investment is logical given its wide array of positive net present value electric car projects available to invest in.

c. Capital gains on Bitcoin realised by Tesla will be double taxed at the corporate and personal levels rather than just at the personal level if shareholders bought Bitcoin themselves personally.

d. Shareholders can just as easily diversify into Bitcoin themselves rather than hold shares in the diversified conglomerate Tesla that now holds electric-cars and Bitcoin.

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