The total market value of Quinlan Carpet's assets is $1.2 Million. The total market value of all of their debt is $450,000. The capital structure of the company is made up of only debt and common equity. There are 50,000 common shares outstanding. The company has declared a 20% stock dividend, with the ex-dividend date being tomorrow.

 

All else equal, what do you expect the ex-dividend price to be?

Answer rating: 100% (QA)

A stock dividend does not impact the total market value of a company It involves dist... View the full answer