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A company whose shares are currently trading at $3.5 proposes to have a 25 per cent split; that is, four new shares for one existing

A company whose shares are currently trading at $3.5 proposes to have a 25 per cent split; that is, four new shares for one existing share. At the commencement of the next business day, a dividend of 21 cents is paid on existing shares, followed immediately by the share split. The theoretical price of the new shares is $________ (two decimal places)

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