The Stock of Payout Corp will go ex-dividend tomorrow. The dividend will be .50 per share, and

Question:

The Stock of Payout Corp will go ex-dividend tomorrow. The dividend will be .50 per share, and there are 20,000 shares of stock outstanding. The market value balance sheet for Payout is shown on the following table

Liabilities and Equities Assets Cash $ 100,000 Equity $ 1,000,000 Fixed Assets $ 900,000

a. What price is Payout stock selling for today?

b. What Price will it sell for tomorrow? Ignore Taxes.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...