4. 5.

Regular dividends [LO 17.1] The statement of financial position for Sinking Ship Company is shown here in market value terms. There are 14 000 shares outstanding.

1.
The company has declared a dividend of $1.30 per share. The shares go ex dividend tomorrow. Ignoring any tax effects, what are the shares selling for today? What will they sell for tomorrow? What will the statement of financial position look like after the dividends are paid?

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Market value statement of financial position Cash $ 53 700 Equity $438 700 Non-current assets 385 000