The market value balance sheet for Murray Manufacturing is shown here. The company has declared a 20 percent stock dividend. Thestock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 21,000 shares ofstock outstanding.CashFixed assetsTotalMarket Value Balance Sheet$ 142,000. Debt780,000Equity$ 922,000Ex dividend priceTotal$ 222,700699,300$922,000What will the ex-dividend price be?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

Given,Market value of equity = $699300No.of shares outstanding = 21,000Stock dividend=20%Required is…

he market value balance sheet for Murray Manufacturing is shown here. The company has declared a 20 percent stock dividend. The tock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 21,000 shares of tock outstanding Cash Fixed assets Total Market Value Balance Sheet $ 142,000 Debt 750,000 Equity $ 922,000 Ex dividend price Total $ 222,700 699, 300 $ 922,000 What will the ex-dividend price be? lote: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

he market value balance sheet for Murray Manufacturing is shown here. The company has declared a 20 percent stock dividend. The tock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 21,000 shares of tock outstanding Cash Fixed assets Total Market Value Balance Sheet $ 142,000 Debt 750,000 Equity $ 922,000 Ex dividend price Total $ 222,700 699, 300 $ 922,000 What will the ex-dividend price be? lote: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

The market value balance sheet for Murray Manufacturing is shown here. The company has declared a 20 percent stock dividend. The
stock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 21,000 shares of
stock outstanding.
Cash
Fixed assets
Total
Market Value Balance Sheet
$ 142,000. Debt
780,000
Equity
$ 922,000
Ex dividend price
Total
$ 222,700
699,300
$922,000
What will the ex-dividend price be?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

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