Kohinoor Chemicals Ltd is a prominent company in the chemical industry in our country. The company has already 8,000,000 shares outstanding in market. The company regularly provides dividend to its shareholders. The current balance sheet condition of the company is as follows: Assets Amount (Tk) Liabilities & Equity Amount Cash

Other Assets

10,000,000

140,000,000

Liabilities Common Stock (8,000,000 shares at Tk. 10 par) Paid-up-capital in excess of par

Retained Earnings Total Shareholders Equity

30,000,000

80,000,000

16,000,000

24,000,000 120,000,000

Total Assets 150,000,000 Total Liabilities & Equity 150,000,000

Requirements: (a) Given the above information, calculate the current market price per share. [1] (b) The company has recently decided to pay a cash dividend of Tk 1 per share. With the announcement of this dividend, what change will be created on companys balance sheet? [2] (c) What will be the balance sheet condition after payment of the cash dividend? [2] (d) After the cash dividend, what will be the market price per share? [2] (e) If the company decides to pay a 10% stock dividend, what will be the change in the balance sheet considering the current market price of its share as Tk. 18 per share.