The balance sheet for Ferguson Corp. is shown here in market value terms. There are 12,000 shares

Question:

The balance sheet for Ferguson Corp. is shown here in market value terms. There are 12,000 shares of stock outstanding.

Market Value Balance Sheet

Cash........................$ 52,900.............Equity.................$387,900

Fixed assets.................335,000

Total........................$387,900.............Total...................$387,900

The company has declared a dividend of $1.30 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?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... 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...