Question
The stock of Payout Corporation will go ex-dividend tomorrow. The dividend will be $0.30 per share, and there are 30,000 shares of stock outstanding. The
The stock of Payout Corporation will go ex-dividend tomorrow. The dividend will be $0.30 per share, and there are 30,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes.
| Assets | Liabilities and Equity | ||
|---|---|---|---|
| Cash | $ 110,000 | Equity | $ 1,020,000 |
| Fixed assets | 910,000 |
What price is Payout stock selling for today?
What price will it sell for tomorrow?
Note - For all requirements, round your answer to 2 decimal places.
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Intermediate Financial Theory
Authors: Jean-Pierre Danthine, John B. Donaldson
2nd Edition
0123693802, 978-0123693808
