12. The stock of Payout Corporation will go ex-dividend tomorrow. The dividend will be 50.50 per share, and there are 20,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes. What is the price of the stock today versus tomorrow? Assets Cash Fixed assets Liabilities and Equity $ 300,000 Equity $ 900,000 b. a. Price today $60 and tomorrow $59.50 Price today $45 and tomorrow = $45.50 Price today = $45 and tomorrow = $59.50 d. Price today = $60 and tomorrow = $60.50 None of these is correct C. e. $ 1,200,000

12. The stock of Payout Corporation will go ex-dividend tomorrow. The dividend will be 50.50 per share, and there are 20,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes. What is the price of the stock today versus tomorrow? Assets Cash Fixed assets Liabilities and Equity $ 300,000 Equity $ 900,000 b. a. Price today $60 and tomorrow $59.50 Price today $45 and tomorrow = $45.50 Price today = $45 and tomorrow = $59.50 d. Price today = $60 and tomorrow = $60.50 None of these is correct C. e. $ 1,200,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 11P

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