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The balance sheet for Kare Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding. Market Value Balance Sheet Cash
The balance sheet for Kare Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding. Market Value Balance Sheet Cash $44,300 Equity Fixed 370,000 assets $ 414,300 Total $ 414,300 Total $ 414,300 The company has declared a dividend of $2.00 per share. The stock goes ex dividend tomorrow. a. Ignoring any tax effects, what is the stock selling for today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Ignoring any tax effects, what will the stock sell for tomorrow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Stock price Stock price 82.86 82.86 b. $ c. Ignoring any tax effects, what will the balance sheet look like after the dividends are paid? Answer is complete and correct. $ 404,300 Cash Fixed assets Total Market Value Balance Sheet 34,300 Equity 370,000 404,300 Total 404,300
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