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Problem 17-5 How Corporations Pay Dividends (LO1) The stock of Payout Corporation will go ex-dividend tomorrow. The dividend will be $0.40 per share, and there are 15,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes. Assets Cash Fixed assets Liabilities and Equity $ 280,000 Equity 1,070,000 $ 1,350,000 a. What price is Payout stock selling for today? b. What price will it sell for tomorrow? Note - For all requirements, round your answer to 2 decimal places.

Problem 17-5 How Corporations Pay Dividends (LO1) The stock of Payout Corporation will go ex-dividend tomorrow. The dividend will be $0.40 per share, and there are 15,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes. Assets Cash Fixed assets Liabilities and Equity $ 280,000 Equity 1,070,000 $ 1,350,000 a. What price is Payout stock selling for today? b. What price will it sell for tomorrow? Note - For all requirements, round your answer to 2 decimal places.

Essentials Of Investments
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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Problem 17-5 How Corporations Pay Dividends (LO1) The stock of Payout Corporation will go ex-dividend tomorrow. The dividend will be $0.40 per share, and there are 15,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes. Assets Cash Fixed assets $ 280,000 1,070,000 a. Price b. Price Liabilities and Equity Equity $ 1,350,000 a. What price is Payout stock selling for today? b. What price will it sell for tomorrow? Note - For all requirements, round your answer to 2 decimal places.
Transcribed Image Text:Problem 17-5 How Corporations Pay Dividends (LO1) The stock of Payout Corporation will go ex-dividend tomorrow. The dividend will be $0.40 per share, and there are 15,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes. Assets Cash Fixed assets $ 280,000 1,070,000 a. Price b. Price Liabilities and Equity Equity $ 1,350,000 a. What price is Payout stock selling for today? b. What price will it sell for tomorrow? Note - For all requirements, round your answer to 2 decimal places.
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