Dividend policy and company value: You own 7,000 shares of Irri-gate Co. The company has decided to pay a special dividend of $1.00 per share. Dividend payments are taxed at 15 per cent. You intend to reinvest your dividend back into the company, but the company does not have a dividend reinvestment program. To reinvest through your broker, you will have to pay a $46 commission. If the company's shares are trading at $12.43 following the dividend payment, how many additional shares will you be able to purchase?
A) 563 shares
B) 481 shares
C) 478 shares
D) 475 shares

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The Answer of Dividend policy and company value: You own 7,000 shares of Irri-gate Co. The company has decided to pay a special dividend of $1.00 per share. Dividend payments are taxed at 15 per cent. You intend to reinvest your dividend back into the company, but the company does not have a dividend reinvestment program. To reinvest through your broker, you will have to pay a $46 commission. If the company's shares are trading at $12.43 following the dividend payment, how many additional shares will you be able to purchase?
A) 563 shares
B) 481 shares
C) 478 shares
D) 475 shares

Dividend Policy and Company Value: You Own 7,000 Shares of Irri-Gate