Question: Regular Dividends the balance sheet for apple pie Corp, is shown here in market values terms. There are 5,000 shares of stock outstanding. The company

Regular Dividends the balance sheet for apple pie Corp, is shown here in market values terms. There are 5,000 shares of stock outstanding.

Market Value Balance Sheet Cash Equity S215,000 S25,000 Fixed assets 190,000 Total S215,000 Total S215,000

The company has declared a dividend of $1.20 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid?

Market Value Balance Sheet Cash Equity S215,000 S25,000 Fixed assets 190,000 Total S215,000 Total S215,000

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