Question
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. |
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| Market Value Balance Sheet | ||||||
| Cash | $ | 44,700 |
| Equity | $ | 454,700 |
| Fixed assets |
| 410,000 |
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| Total | $ | 454,700 |
| Total | $ | 454,700 |
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| The company has declared a dividend of $1.60 per share. The stock goes ex dividend tomorrow. | ||||||||||||
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| 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.) | |||||||||||
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| c. | Ignoring any tax effects, what will the balance sheet look like after the dividends are paid? | ||||||||||||||||||
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Measurement Theory In Action
Authors: Kenneth S Shultz, David Whitney, Michael J Zickar
3rd Edition
9780367192181
