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 25 percent stock dividend. The stock goes ex dividend

image text in transcribed

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. Cash Fixed assets Market Value Balance Sheet $ 79,000 Debt $ 116,000 545,000 Equity 508,000 624,000 Total 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.) a. Current share price b. New share price per share per share

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

Students also viewed these Finance questions