Gce Model Questions Vol1 2022 Commerce Question 44
Practice objective / multiple choice question 44 from the 2022 Gce Model Questions Vol1 Commerce examination.
A company has 2.5 million ordinary shares outstanding, an EPS of \(\text{₦}18\) and a current share price of \(\text{₦}540\). It announces a 3‑for‑1 share split and, after the split, declares a dividend equal to \(15\%\) of the new share price. An investor holds 1{,}200 shares before the split and will sell half of the shares immediately after the split at the new market price, keeping the rest for dividend income. Assuming the market price adjusts perfectly to the split, what total cash will the investor receive from the sale and the dividend combined?
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About This Question
This is Gce Model Questions Vol1 2022 Commerce Question 44. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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