Question
The market value balance sheet for Vena Sera Manufacturing is shown here. Vena Sera has declared a 25 percent stock dividend. The stock goes ex
| The market value balance sheet for Vena Sera Manufacturing is shown here. Vena Sera has declared a 25 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 17,000 shares of stock outstanding. |
| Market Value Balance Sheet | |||
| Cash | $207,000 | Debt | $189,000 |
| Fixed assets | 356,000 | Equity | 374,000 |
| Total | $563,000 | Total | $563,000 |
| Required: |
| (a) | What is the stock price today? |
| (b) | What will the ex-dividend price be? |
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
