The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $2.25 per share, and

Fantastic news! We've Found the answer you've been seeking!

Question:

The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $2.25 per share, and there are 50,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below.

Assets		Liabilities and Equity
Cash	$450,000	Equity	$1,650,000
Fixed assets	1,200,000

a.	What price is Payout stock selling for today? (Round your answer to the nearest cent.)

Price $

b.	What price will it sell for tomorrow? Ignore taxes. (Round your answer to 2 decimal places.)

Price $

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0078034640

7th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

See More Books

Posted Date: Mar 10, 2024 05:12 AM

See More Questions

On August 31, 2020 ABC Inc. made a sale of equipment that has a list price of $1,900,000. The payment arrangements made with the customer are as follows: the customer will pay equal annual payments...
The treasurer of Kelly Bottling Company (a corporation) currently has $200,000 invested in preferred stock yielding 10 percent. He appreciates the tax advantages of preferred stock and is considering...
Hernandez Company began 2010 with a $120,000 balance in retained earnings. During the year, the following events occurred: 1. The company earned net income of $80,000. 2. A material error in net...
For each of the following, compute the future value: Future Value Present Value $ 3,150 89,305 Years Interest Rate 13% 19 13 21 8,453 227,382
It is often stated that an auditor cannot be truly independent when payment of fees is dependent on the client's management. Explain two approaches that could reduce this appearance of impaired...
Suppose that in September 2013 a company takes a long position in a contract on May 2014 crude oil futures. It closes out its position in March 2014. The futures price (per barrel) is $$88.30$ when...
Echo Ridge Homes manufactures prefabricated chalets in Colorado. The company uses a perpetual inventory system and a job cost system in which each chalet is a job. The following events occurred...
What are some reasons why understanding the organization of the Internal Revenue Code may prove useful in the accounting world no matter what your job title is ?
An arrangement between the two companies that have decided to share their resources to undertake a specific, mutually and beneficial project, why it is important for companies to do this and how they...
THE Fiji Court of Appeal has ordered the permanent secretary for Health and the Attorney-General of Fiji to pay $110,660 in compensation to the family of a child who died because of medical...
Case taken from Shevlin, R. (2023) The new venture capitalists: How Community Banks are fueling the growth of Fintech , Forbes . Forbes Magazine. Available at:...
According to the Aggregate Supply and Demand (AS-AD) model, equilibrium is reached when aggregate supply and aggregate demand cross, signifying that the economy is in a balanced condition. In the...
What would be the future value of $8,743 invested annually for nine years beginning one year from now if the annual interest rate is 10 percent? (Round answer to O decimal places.) Future value $...
Project success is dependent upon several factors, not the least of which is effective and efficient communication. Assume you have just been assigned to manage an office renovation project for...
QUESTION 4 (a) A random sample of 6 steel beams has a mean compressive strength of 58392 psi (pound per square inch) with its population standard deviation is 648 psi. Use this information and the...
Prove that if Σ an is absolutely convergent, then a. an
With a tax rate of 35%, Big Oil had a WAAC of 10.5%. Suppose Big Oil is excused from paying taxes. TABLE 13.3 Suppose Big Oil starts from the financing mix in Table 13.3, and then borrows an...
Look back to the Sealed Air example in the box in Section 16.4. What was the value of financial slack to Sealed Air before its restructuring? What does the success of the restructuring say about...
Using the information below recalculate Dynamic Mattress's financing plan assuming assuming that the firm wishes to maintain a minimum cash balance of $10 million instead of $5 million. Assume the...
Analyze the monetary policy transmission mechanism.
Explain how an open market purchase of securities by a central bank affects the banking systems balance sheet, and discuss the potential impact on the supply of bank loans.
Explain why monetary policymakers actions in cutting the target range for the federal funds rate to 0 to 14 percent were not sufficient to boost economic activity during the recession of 20072009.

The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $2.25 per share, and

Question:

Expert Answer:

a To find the price of Payout stock selling for today we nee... View the full answer

Fundamentals of Corporate Finance

Students also viewed these finance questions