Question
The market value balance sheet for Desktop Manufacturing is shown here. The company has declared a 20 percent stock dividend. The stock goes ex dividend
The market value balance sheet for Desktop Manufacturing is shown here. The company has declared a 20 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 | $ | 88,000 | Debt | $ | 147,000 | |||
Fixed assets | 720,000 | Equity | 661,000 | |||||
Total | $ | 808,000 | Total | $ | 808,000 | |||
There are 23,000 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.) Current share price $
What will the ex-dividend price be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Ex-dividend price $
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