Question
Mr. Zameer owns 2000-unit shares of Aerobus Group Bhd. The firms board of directors declared a cash dividend of RM0.30 a share recently, that will
Mr. Zameer owns 2000-unit shares of Aerobus Group Bhd. The firms board of directors declared a cash dividend of RM0.30 a share recently, that will be paid out on April 18 to the shareholders of record as of March 22. a) Compute the dividends, if any, will Mr. Zameer receive if he sells his stock on March 21. (3 marks) b) Assume Mr. Zameer decides to hold on to the stock rather than sell it. If he belongs to the Aerobus Groups dividend reinvestment plan (DRIP), how many new shares of stock will he receive if the stock is currently trading at RM2.50 and the DRIP plan offers a 2.0% discount on the share price of the stock? (3 marks)
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