Your portfolio is 80 shares of Sonny Morning Coffee, Inc. The stock currently sells for $78 per share. The company has announced a dividend of $1 per share with an ex-dividend data of December 19^th. Other things equal and assuming no taxes, what will your total value of Sunny Morning Coffee shares be worth on December 20^th? 6, 240 6, 320 6, 160 6, 080 Bermuda Triangle Corporation (BTC) currently has 500,000 shares of stock outstanding that sell for $83 per share. Assuming no market imperfections or tax effects exist If BTC issues a 2 for 1 stock split, what will be the total number of shares and what will be the share price? 750.000 shares selling at $83. 750.000 shares selling at $-11.50 1.000.000 shares selling at $41.50 750.000 shares selling at 555.33 If BTC (in question 39 above) had a 10% stock dividend instead of the stock split, what do you think will be the price of the new shares alter the stock dividend? Higher than $83 Exactly $83. as nothing happened About 10% less than $83 Much lower than 10% below $83. We discussed stock splits and reserve stock splits. We have discussed in class all of the following firms having splits. Which of the firms below has used a reverse stock split in recent years? Apple. Google Under Armor. Citibank. The balance sheet for Price Cut Inc is shown here in market value terms. There are 25,000 shares of stock outstanding. The company has declared a dividend of $1.20 per share. The stock goes ex-dividend tomorrow. Ignore all tax effects. What is the share price before the dividend and after the dividend? Before $24 and after $22.80 Before $22.60 and after $21.40 Before $23.60 and after $22.40 Before $21.20 and after $20.00 Consider Price Cut's Balance Sheet in Question 42. Total dividends paid out are S30.000 (25,000* 1.20). What happens to the Balance Sheet? Assets increase. Equity decreases by $30.000 and so does fixed assets. Equity decreases by $30.000 and so does cash. Nothing. Dividends are irrelevant