1. Firm A has a dividend reinvestment plan for its shareholders. Historically, approximately 65% of the shareholders will take advantage of the dividend reinvestment plan, and shares are sold at 95% of the current market price. The company has declared a cash dividend that will provide $1,000,000 in dividends. If the current market price of the company's shares is $25.00, how many new shares will the company expect to issue? (Assume that the company can issue partial shares.)

2.At the board of directors meeting on December 5, it is reported that the EPS of the firm is expected to be $1.25 per share. The board of directors declares a dividend of $0.75 per share on December 5 (Wednesday), with a holder-of-record date of January 10 (Thursday) and a payment date of January 18 (Friday). At the close of trading, you sell your 5,000 shares on January 8 (Tuesday). How much will you receive in dividends on January 18?