Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 8,000 shares of stock outstanding. Market Value Balance Sheet

The balance sheet for Sinking Ship Corp. is shown here in market value terms. There are 8,000 shares of stock outstanding.

Market Value Balance Sheet Cash $ 45,600 Equity $ 545,600

Fixed assets 500,000

Total $ 545,600 Total $ 545,600

The company has declared a dividend of $1.90 per share. The stock goes ex dividend tomorrow.

The company has declared a dividend of $1.90 per share. The stock goes ex dividend tomorrow.

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.)

Ignoring any tax effects, what will it sell for tomorrow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

This is the part I'm coming up with the wrong answers

Ignoring any tax effects, what will the balance sheet look like after the dividends are paid? (Do not round intermediate calculations.)
Balance Sheet
Cash $36,600selected answer incorrect Equity $530,400selected answer correct
Fixed assets 500,000selected answer correct
Total $536,600selected answer incorrect Total $530,400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started