Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The market value balance sheet for Bobaflex Manufacturing is shown here. The company has declared a 10 percent stock dividend. The stock goes ex dividend

The market value balance sheet for Bobaflex Manufacturing is shown here. The company has declared a 10 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend).

Market Value Balance Sheet
Cash $ 82,000 Debt $ 141,000
Fixed assets 660,000 Equity 601,000
Total $ 742,000 Total $ 742,000

a.

There are 17,000 shares of stock outstanding. What is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. What will the ex-dividend price be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Financial Management In The Public Sector Tools Applications And Cases

Authors: Xiaohu Wang

2nd Edition

0765625229, 9780765625229

More Books

Students also viewed these Finance questions

Question

Draw the full structure of the RNA dinucleotide UA.

Answered: 1 week ago