The balance sheet for Price Cut, Inc., is shown here in market value terms. There are 25,000

Question:

The balance sheet for Price Cut, Inc., is shown here in market value terms. There are 25,000 shares of stock outstanding. Market Value Balance Sheet $110,000 480,000 Cash Equity Total $590,000 Fixed assets Total $590,000 $590,000

The company has declared a dividend of $1.20 per share. The stock goes ex-dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...