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The market value balance sheet for Murray Manufacturing is shown here. The company has declared a 30 percent stock dividend. The stock goes ex dividend
The market value balance sheet for Murray Manufacturing is shown here. The company has declared a 30 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 28,000 shares of stock outstanding.
Cash | $ 116,000 | Debt | $ 237,600 |
Fixed assets | 900,000 | Equity | 778,400 |
Total | $ 1,016,000 | Total | $ 1,016,000 |
What will the ex-dividend price be?
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