The balance sheet for Ferguson Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 45,400 Equity $ 525,400 Fixed assets 480,000 Total $ 525,400 Total $ 525,400 The company has declared a dividend of $1.70 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Stock price $ per share Ignoring any tax effects, what will it sell for tomorrow? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Stock price $ per share Ignoring any tax effects, what will the balance sheet look like after the dividends are paid? (Do not round intermediate calculations.) Balance Sheet Cash $ Equity $ Fixed assets Total $ Total $
The balance sheet for Ferguson Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 45,400 Equity $ 525,400 Fixed assets 480,000 Total $ 525,400 Total $ 525,400 The company has declared a dividend of $1.70 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Stock price $ per share Ignoring any tax effects, what will it sell for tomorrow? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Stock price $ per share Ignoring any tax effects, what will the balance sheet look like after the dividends are paid? (Do not round intermediate calculations.) Balance Sheet Cash $ Equity $ Fixed assets Total $ Total $
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 11P
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Question
The balance sheet for Ferguson Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding. |
Market Value Balance Sheet | ||||||
Cash | $ | 45,400 | Equity | $ | 525,400 | |
Fixed assets | 480,000 | |||||
Total | $ | 525,400 | Total | $ | 525,400 | |
The company has declared a dividend of $1.70 per share. The stock goes ex dividend tomorrow. |
Ignoring any tax effects, what is the stock selling for today? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
Stock price | $ per share |
Ignoring any tax effects, what will it sell for tomorrow? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
Stock price | $ per share |
Ignoring any tax effects, what will the balance sheet look like after the dividends are paid? (Do not round intermediate calculations.) |
Balance Sheet | ||||||
Cash | $ | Equity | $ | |||
Fixed assets | ||||||
Total | $ | Total | $ | |||
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