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Agilex Bio-Imports will pay an annual dividend of $2

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Agilex Bio-Imports will pay an annual dividend of $2.5 per share and an extra dividend of $0.35 per share at the end of this month. The company’s stock is currently listed and actively traded on ASX.

Medi Equipment. Ltd is a subsidiary of Agilex Bio-Imports. It has 275,000 outstanding common shares, a P/E ratio of 7.5 and $485,000 net income available for common shareholders. The board of directors has just voted a 3−2 share split. You currently own 1,000 shares of this company.

Required:

1. If tomorrow is the record date of cash dividend payment by Agilex Bio-Imports, when is the ex-dividend date for this share, given the standard process of settlement in ASX is T+2? Calculate the ex-dividend price if the corporation’s closing price the day before the ex-dividend date was $49.3, assuming the dividend flat tax rate is 20%. (2 marks)

2. Agilex Bio-Imports needs to pay Euro 875,000 to a partner in Europe. If the direct quote of Euro in Sydney is 1.575, how much in AUD should the corporation record in their accounting book for this transaction? (1 mark)