Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 2MAD
Related questions
Question
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.85 per share, and there are 31,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes.
Assets | Liabilities and Equity | ||||
Cash | $220,000 | Equity | $1,240,000 | ||
Fixed assets | 1,020,000 | ||||
a. What price is Payout stock selling for today? (Round your answer to 2 decimal places.)
b. What price will it sell for tomorrow? (Round your answer to 2 decimal places.)
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