The market value balance sheet for Murray Manufacturing is shown here. The company has declared a 20 percent stock dividend. Thestock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 21,000 shares ofstock outstanding.CashFixed assetsTotalMarket Value Balance Sheet$ 142,000. Debt780,000Equity$ 922,000Ex dividend priceTotal$ 222,700699,300$922,000What will the ex-dividend price be?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

Given,Market value of equity = $699300No.of shares outstanding = 21,000Stock dividend=20%Required is…

he market value balance sheet for Murray Manufacturing is shown here. The company has declared a 20 percent stock dividend. The tock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 21,000 shares of tock outstanding Cash Fixed assets Total Market Value Balance Sheet $ 142,000 Debt 750,000 Equity $ 922,000 Ex dividend price Total $ 222,700 699, 300 $ 922,000 What will the ex-dividend price be? lote: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

he market value balance sheet for Murray Manufacturing is shown here. The company has declared a 20 percent stock dividend. The tock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 21,000 shares of tock outstanding Cash Fixed assets Total Market Value Balance Sheet $ 142,000 Debt 750,000 Equity $ 922,000 Ex dividend price Total $ 222,700 699, 300 $ 922,000 What will the ex-dividend price be? lote: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 2P

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