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How many shares must john sell to make up the shortfall

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Reference no: EM132975391

John owns 10,000 shares Apple Corp, which is currently trading at $5.50/share. John was expecting $0.80 dividend per share from Apple Corp, but instead was disappointed that Apple Corp has just announced a dividend of $0.50/share. Assume no taxation.

Required

Problem 1: Calculate John's total wealth from these shares before receiving the dividend

Problem 2: Calculate John's total wealth from these shares after receiving the dividend

Problem 3: How many shares must John sell to make up the shortfall in dividend expected? What is his total wealth after selling these shares?

Reference no: EM132975391

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