A companys shares are trading at R27. The company declares a dividend of R1.20 per share. Shareholders are given the option of cash payment or in the form of a scrip dividend. How many new shares will an investor receive if they currently hold 1 000 000 shares and opt for the scrip dividend, assuming the share price is unchanged on the payment date?

a. 22 500 000

b. 44 444

c. 1 044 444

d. 37 037

Do not copy from Chegg I need a full explanation.