3. A firm has a market value equal to its book value. Currently, the firm has excess cash of $8,500 and other assets of $17,500. Equity is worth $26,000. The firm has 500 shares of stock outstanding and net income of $2,000. What will the stock price per share be if the firm pays out its excess cash as a cash dividend?

A. $50

B. $54

C. $43

D. $35

E. $39

7.

Murphy's, Inc., has 35,000 shares of stock outstanding with a par value of $1 per share. The market value is $12 per share. The balance sheet shows $77,500 in the capital in excess of par account, $35,000 in the common stock account, and $147,500 in the retained earnings account. The firm just announced a stock dividend of 11 percent. What will the balance in the capital in excess of par account be after the dividend?

A. $105,150

B. $116,000

C. $123,700

D. $119,850

E. $116,200