Question
The market value balance sheet for Bobaflex Manufacturing is shown here. The company has declared a 30 percent stock dividend. The stock goes ex dividend
The market value balance sheet for Bobaflex Manufacturing is shown here. The company has declared a 30 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 14,000 shares of stock outstanding.
Market Value Balance Sheet Cash $ 184,000 Debt $ 173,000 Fixed assets 271,000 Equity 282,000 Total $ 455,000 Total $ 455,000
| Cash | 184000 | Debt | 173000 |
| Fixed Assets | 271000 | Equity | 282000 |
| Total | 455000 | Total | 455000 |
What is the stock price today?
| Stock price |
What will the ex-dividend price be?
| Ex-dividend price |
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
