Problem 14-7 Regular Dividends [LO 1]

The balance sheet for Price Cut, Inc., is shown here in market value terms. There are 29,000 shares of stock outstanding.

Market Value Balance Sheet

Cash	$136,000
Fixed assets	499,970		Equity	$635,970
Total	$635,970		Total	$635,970

The company has declared a dividend of $1.60 per share. The stock goes ex-dividend tomorrow. Ignore all tax effects.

Requirement 1:

What is the stock selling for today? (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).)

Stock price

$

Requirement 2:

What will it sell for tomorrow? (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).)

Stock price

$

Requirement 3:

What will the balance sheet look like after the dividends are paid? (Do not include the dollar signs ($).)

Cash	$	Equity	$
Fixed assets
Total	$	Total	$