Question: The balance sheet for Pie Crust, Inc., is shown here in market value terms. There are 15,000 shares of stock outstanding. The company has declared

The balance sheet for Pie Crust, Inc., is shown here in market value terms. There are 15,000 shares of stock outstanding.

The company has declared a dividend of $1.20 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?

Market Value Balance Sheet Cash Fixed assets 470,000 Equity S140,000 610,000 610,000 Total $610,000 Total

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