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The market value balance sheet for Desktop Manufacturing is shown here. The company has declared a 15 percent stock dividend. The stock goes ex dividend
| The market value balance sheet for Desktop Manufacturing is shown here. The company has declared a 15 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 | $ | 87,000 | Debt | $ | 146,000 | |
| Fixed assets | 710,000 | Equity | 651,000 | |||
| Total | $ | 797,000 | Total | $ | 797,000 | |
| a. | There are 22,000 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.) |
| b. | What will the ex-dividend price be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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Personal Finance
Authors: Jack Kapoor
12th Edition
125996776X, 9781259967764
