After the scrip dividend, what will be the total wealth of the shareholder?


CORRECT TEXT

The ex div share price of a company’s shares is $2.20.

An investor in the company currently holds 1,000 shares.

The company plans to issue a scrip dividend of 1 new share for every 10 shares currently held.

After the scrip dividend, what will be the total wealth of the shareholder?

Give your answer to the nearest whole $.

$ ? .

Answer: 2200

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