Problem 2 The stock of Payout Corp will go ex dividend tomorrow The dividend will be $1 per share, and there are 20,000 shares of stock outstanding The market value balance sheet for Payout is shown below a What price is Payout stock selling for today b What price will it sell for tomorrow Ignore taxes Assets Liabilities and Equity Cash $100,000 Equity $1,000,000 Fixed assets 900,000

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Problem #2: The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $1 per share, and there are 20,000 shares of stock

Problem #2:

The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $1 per share, and there are 20,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below.

What price is Payout stock selling for today?

What price will it sell for tomorrow? Ignore taxes.

Assets		Liabilities and Equity
Cash	$100,000	Equity	$1,000,000
Fixed assets	900,000

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