Explore BrainMass

Explore BrainMass

    Price - now and ex-dividend

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be .50 per share, and there are 20,000 shares of stock outstanding. The market value balance sheet for Payout is shown on the following table.

    Assets Liabilities and Equity
    Cash $100,000 Equity $1,000,000
    Fixed Assets 900,000

    a. What price is Payout stock selling for today?

    b. What price will it sell for tomorrow? Ignore taxes.

    © BrainMass Inc. brainmass.com March 4, 2021, 9:18 pm ad1c9bdddf

    Solution Preview

    a. We are given the market value balance sheet. This implies that the market value of ...

    Solution Summary

    The solution explains how the determine the price today and when it goes ex-dividend