Dividends in the market
Not what you're looking for?
Problem 1:
Midnight Hour Inc. has declared a $5.10 per-share dividend. Suppose capital gains are not taxed, but dividends are taxed at 15%. New IRS regulations require that taxes be withheld at the time the dividend is paid. Midnight Hour sells for $83 per share and the stock is about to go ex-dividend. What do you think the ex-dividend price will be?
Problem 7:
The market value balance sheet for Outbox Manufacturing is shown here. Outbox has declared a 25% stock dividend. The stock goes ex-dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 30,000 shares of stock outstanding. What will the ex-dividend price be?
Market Value Balance Sheet:
Cash: $145,000 Debt: $127,000
Fixed Assets: $598,000 Equity: $616,000
Total: $743,000 Total: $ 743,000
Purchase this Solution
Solution Summary
The dividends in the market are determined.
Solution Preview
Problem 1:
Ex-dividend Price = Declared Dividend - (Declared Dividend x Tax Rate) = $5.10 ...
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.