Sophie Chan owns 100,000 shares of PAT Company. PAT is selling for 40 per share, so her
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Sophie Chan owns 100,000 shares of PAT Company. PAT is selling for €40 per share, so her investment is worth €4,000,000. Chan reinvests the gross amount of all dividends received to purchase additional shares. Assume that the clientele for PAT shares consists of tax-exempt investors. If PAT pays a €1.50 dividend, Chan’s new share ownership after reinvesting dividends at the ex-dividend price would be closest to:
A. 103,600.
B. 103,750.
C. 103,900.
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Related Book For
Corporate Finance A Practical Approach
ISBN: 9781118217290
2nd Edition
Authors: Michelle R Clayman, Martin S Fridson, George H Troughton, Matthew Scanlan
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