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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.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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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
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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