Question
The market value balance sheet for Outbox Manufacturing is shown here. Outbox has declared a stock dividend of 15 percent. The stock goes ex dividend
The market value balance sheet for Outbox Manufacturing is shown here. Outbox has declared a stock dividend of 15 percent. 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 | |
| There are 22,000 shares of stock outstanding. What is the current share price?
|
| Current share price |
What will the ex-dividend price be?
| Ex-dividend price per share |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Contemporary Issues In Behavioral Finance
Authors: Simon Grima
1st Edition
1787698823, 978-1787698826
