Ask Question
16 August, 20:08

Wotan owns 1,000 shares of a firm that has just announced an increase in its div - idend from $2.00 to $2.50 a share. the share price is currently $150. if wotan does not wish to spend the extra cash, what should he do to offset the dividend increase?

+4
Answers (1)
  1. 16 August, 23:44
    0
    Ans : Wotan can reinvest the whole amount (1000 X 0.50 = 500) in the stock. If the ex-dividend price is $ (150 - 2.50) = 147.50, this should involve the purchase of 500 / 147.50, or about 3 shares of the firm.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Wotan owns 1,000 shares of a firm that has just announced an increase in its div - idend from $2.00 to $2.50 a share. the share price is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers