Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 $ 84,00 Debt Fixed assets 680,000 Equity Total 5 764,000 Total $ 143,000 621,000 $ 764,000 There are 19,000 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 $0 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 $0

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

Capitalism Without Capital The Rise Of The Intangible Economy

Authors: Jonathan Haskel, Stian Westlake

1st Edition

0691183295, 978-0691183299

More Books

Students also viewed these Finance questions