The market value balance sheet for Tidwell Manufacturing is shown here. Tidwell has declared a 20 percent

Question:

The market value balance sheet for Tidwell Manufacturing is shown here. Tidwell has declared a 20 percent stock dividend. The stock goes ex-dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 16,000 shares of stock outstanding. What will the ex-dividend price be? Market Value Balance Sheet $145,000 600,000 $115,000 630,000 Debt Equity Total Cash Fixed assets Total $745,000 $745,000

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...