2200Current wealth = 1,000 shares × $2.20 = $2,200.With a 1-for-10 scrip dividend, the investor receives:1,000 ÷ 10 = 100 new shares → total = 1,100 shares.With a scrip dividend, no cash leaves the company — total company value is spread over more shares. Theoretical new share price:New price=2.20×1011=2.00\text{New price} = 2.20 \times \frac{10}{11} = 2.00New price=2.20×1110​=2.00 Shareholder wealth after scrip:1,100×2.00=$2,2001,100 \times 2.00 = \$2,2001,100×2.00=$2,200 So total wealth is unchanged at $2,200.