Q4. (20 marks) The balance sheet for Chevelle Corp. is shown here in market value terms. There are 8,000 shares of stock outstanding. - Market Value Balance Sheet Cash $38,500 Equity $308,500 Fixed assets 270,000 Total $308,500 Total $308,500 The company has declared a dividend of $1.30 per share. The stock goes ex dividend tomorrow. a) Ignoring any tax-effects, what is the stock -selling for today? What will it sell for tomorrow? (6 marks) b) What will the balance sheet look like after the dividends are paid? (6 marks) c) Explain the relevance / irrelevance of dividend policy and describe non-qualitatively how it works. (8 marks) Q4. (20 marks) The balance sheet for Chevelle Corp. is shown here in market value terms. There are 8,000 shares of stock outstanding. - Market Value Balance Sheet Cash $38,500 Equity $308,500 Fixed assets 270,000 Total $308,500 Total $308,500 The company has declared a dividend of $1.30 per share. The stock goes ex dividend tomorrow. a) Ignoring any tax-effects, what is the stock -selling for today? What will it sell for tomorrow? (6 marks) b) What will the balance sheet look like after the dividends are paid? (6 marks) c) Explain the relevance / irrelevance of dividend policy and describe non-qualitatively how it works. (8 marks)