a) Recently, the Board of Directors of KJP Berhad has declared a dividend of RM3.00 per share payable on Friday 24th June to the holders of record as of 3rd June 2022. Ali buys 200 shares of KJP Berhad shares on 27th May for RM10 per share. Is Ali entitled to receive the dividends declared? Explain your answer.

b) What is a stock dividend and how is it similar to a stock split?

(5 marks) (5 marks)

c) JP Berhad is planning to pay dividends of RM550,000. There are 275,000 shares outstanding with an earnings per share of RM6. The share should sell for RM45 after the ex-dividend date. Instead of paying dividend, the management decides to repurchase stocks.

1. What should be the repurchase price?

2. How many shares should be repurchased?

(3 marks)

(2 marks)