Mr. X, a senior executive of BPC Electronics Limited has holding of 42,000 shares of the company. The shares are currently trading in the stock…

CA Intermediate · Financial Management and Strategic Management · PYQS · January 2026
Mr. X, a senior executive of BPC Electronics Limited has holding of 42,000 shares of the company. The shares are currently trading in the stock exchange at 480 per share. Mr. X has a policy of reinvesting the amount of any dividends received back into the shares of the company. BPC Electronics Limited has declared and paid a dividend of 30 per share. What is the total number of shares that Mr. X would hold after he reinvests the dividend received in shares of BPC Electronics Limited?
(A) 45,500 shares
(B) 44,800 shares
(C) 45,000 shares
(D) 44,625 shares

Suggested Answer and Working Notes:

Correct Answer: Option (D)

44,625 shares

Topics: Part-A: Financial Management

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic