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What Is a DRIP as It Applies to Stocks? Suppose

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What is a DRIP as it applies to stocks? Suppose you own 5,000 shares of Rough Rider Disposal Inc.and the firm has a DRIP program.Rough Rider pays dividends at the rate of $1.50 per share per year and has a current price of $57 per share.How many additional shares of stock can you receive if you elect to receive your dividends via the DRIP option? What advantage over purchasing the stock on the open market does a DRIP plan offer?


Definitions:

Group Development

The process through which a group evolves over time, including forming, storming, norming, performing, and adjourning stages.

Legitimate Power

Power based on the position a person holds in an organization that is effective only when followers believe in the structure that produces this power.

Informal Group

A group formed naturally with no official structure or formal recognition, often based on personal relationships.

Group Process

The sequence of dynamic interactions and developments that occur within a group setting over time.

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