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The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.95 per share, and there are 16,000 shares of stock outstanding. The
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.95 per share, and there are 16,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes.
| Assets | Liabilities and Equity | ||||
| Cash | $240,000 | Equity | $1,280,000 | ||
| Fixed assets | 1,040,000 | ||||
a. What price is Payout stock selling for today? (Round your answer to 2 decimal places.)
b. What price will it sell for tomorrow? (Round your answer to 2 decimal places.)
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