Question: a) The balance sheet for SPA plc. is shown here in market value terms. There are 3,000 million shares outstanding. Market Value Balance Sheet

a) The balance sheet for SPA plc. is shown here in market

a) The balance sheet for SPA plc. is shown here in market value terms. There are 3,000 million shares outstanding. Market Value Balance Sheet ( mil.) Cash 5,554 Equity 6,584 Fixed Assets 6,830 Liabilities 5,800 Total 12,384 Total 12,384 The company has declared a dividend of 0.30 per share, the equity goes ex-dividend tomorrow. Tasks: a) i. Ignoring any tax effects, show what is the share price today? (5 marks) ii. What will the share price be tomorrow? (5 marks) iii. What will the market value balance sheet look like after tomorrow, once the dividends have been paid?

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