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). Market Value Balance Sheet $ 98,000 Debt 820,000 Equity $ 918,000 Total Cash Fixed assets Total $ 157,000 761,000 $ 918,000 a. There are 33,000 shares of stock outstanding. What is the current share price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. 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.
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). Market Value Balance Sheet $ 98,000 Debt 820,000 Equity $ 918,000 Total Cash Fixed assets Total $ 157,000 761,000 $ 918,000 a. There are 33,000 shares of stock outstanding. What is the current share price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. 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.
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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Vishnu
Transcribed Image Text: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).
Market Value Balance Sheet
$ 98,000 Debt
820,000 Equity
$918,000 Total
Cash
Fixed assets
Total
$ 157,000
761,000
$ 918,000
✓
a. There are 33,000 shares of stock outstanding. What is the current share price?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
b. 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.
Answer is complete but not entirely correct.
a. Current share price $ 23.06
b. Ex-dividend price
23.18
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