Question
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $1.5 per share, and there are 20,000 shares of stock outstanding. The
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $1.5 per share, and there are 20,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below.
| Assets | Liabilities and Equity | ||||
| Cash | $ | 400,000 | Equity | $ | 1,550,000 |
| Fixed assets | 1,150,000 | ||||
a. What price is Payout stock selling for today? (Round your answer to 2 decimal places.)
| Price $ |
b. What price will it sell for tomorrow? Ignore taxes. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
| Price $ |
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrod Harford, David Stangeland, Andras Marosi
3rd Canadian Edition
0135418178, 978-0135418178
