Stock Dividends The market value balance sheet for Outbox Manufacturing is shown here. Outbox has declared a stock dividend of 25 percent. The stock goes exdividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 20,000 shares of stock outstanding. What will the ex-dividend price be?

Market Value Balance Sheet Cash $295,000 Debt $180,000 Fixed assets 540,000 Equity 655,000 Total $835,000 Total $835,000