Question
The market value balance sheet for Bobaflex Manufacturing is shown here. The company has declared a 25 percent stock dividend. The stock goes ex dividend
| The market value balance sheet for Bobaflex Manufacturing is shown here. The company has declared a 25 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 12,000 shares of stock outstanding. |
| Market Value Balance Sheet | ||||||
| Cash | $ | 79,000 | Debt | $ | 116,000 | |
| Fixed assets | 545,000 | Equity | 508,000 | |||
| Total | $ | 624,000 | Total | $ | 624,000 | |
| a. | What is the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | What will the ex-dividend stock price be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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Ethical Obligations and Decision Making in Accounting Text and Cases
Authors: Steven M. Mintz, Roselyn E. Morris
5th edition
1259969460, 73403997, 1260480852, 978-1259969461
