The market value balance sheet for KL Air is shown here. KL Air has declared a 20 per cent stock dividend. The equity goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 15,000 shares of equity outstanding. What will the ex-dividend price be?

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Market Value Balance Sheet (R) 1290,000 Debt 5,440,000 Equity 6,730,000 Total Cash Non-current assets Total (R) 1,682,500 5,047,500 6,730,000