Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The market value balance sheet for Outbox Manufacturing is shown here. Outbox has declared a stock dividend of 25 percent. The stock goes ex dividend
The market value balance sheet for Outbox Manufacturing is shown here. Outbox has declared a stock dividend of 25 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 | $ | 85,000 | Debt | $ | 144,000 | |
Fixed assets | 690,000 | Equity | 631,000 | |||
Total | $ | 775,000 | Total | $ | 775,000 | |
There are 20,000 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 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