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 $

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 11P
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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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