Gce Model Questions Vol1 2017 Commerce Question 27
Practice objective / multiple choice question 27 from the 2017 Gce Model Questions Vol1 Commerce examination.
A company's share is currently trading at \(\text{₦}560\). The company announces a 3‑for‑2 stock split. After the split, it will pay a dividend of \(\text{₦}12\) per share at the end of the year. One year later the share price is expected to rise by \(10\%\) over the post‑split price (excluding the dividend). Investors require a total return of \(12\%\) per annum on the investment (including the dividend). What should be the theoretical post‑split share price immediately before the dividend is paid?
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About This Question
This is Gce Model Questions Vol1 2017 Commerce Question 27. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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