Question
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.80 per share, and there are 22,000 shares of stock outstanding. The
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.80 per share, and there are 22,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes.
Assets Liabilities and Equity
Cash $200,000 Equity $1,210,000
Fixed assets $1,010,000
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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a Current price per share Total Equity Total Shares Current price per share 1210000 ...
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Step: 2
Step: 3
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
7th edition
978-0077616472, 77616472, 78034647, 978-0071314749, 71314741, 978-0078034640
