Question: The market value balance sheet for Ewe Manufacturing is shown here. Ewe has declared a 20 percent stock dividend. The stock goes ex-dividend tomorrow (the

The market value balance sheet for Ewe Manufacturing is shown here. Ewe 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 15,000 shares of stock outstanding. What will the ex-dividend pricebe?

Market Value Balance Sheet $110,000 555,000 Cash $130,000 Debt Fixed assots 585.000 Euity Total $665,000 Total$665000

Step by Step Solution

★★★★★

3.36 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The stock price is the total market value of equity divided by the shares ou... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

106-B-C-F-L-T-P (142).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Stock Dividends the market value balance sheet for inbox Manufacturing is shown here. Inbox has declared a 25 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock...

The market value balance sheet for Outbox Manufacturing is shown here. Outbox has declared a 25 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend is...

The market value balance sheet for Desktop Manufacturing is shown here. The company has declared a 25 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend...

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...

The market value balance sheet for Tidwell Manufacturing is shown here. Tidwell has declared a 10 percent stock dividend. The stock goes ex-dividend tomorrow (the chronology for a stock dividend is...

The market value balance sheet for Tidwell Manufacturing is shown here. Tidwell has declared a 30 percent stock dividend. The stock goes ex-dividend tomorrow (the chronology for a stock dividend is...

The market value balance sheet for Tidwell Manufacturing is shown here. Tidwell has declared a 25 percent stock dividend. The stock goes ex-dividend tomorrow (the chronology for a stock dividend is...

29. The market value balance sheet for Inbox Manufacturing is shown here. Inbox has declared a 15 percent stock dividend. The stock goes ex-dividend tomorrow (the chronology for a stock dividend is...

Microtech Corporation is expanding rapidly, and it currently needs to retain all of its earnings, hence it does not pay any dividends. However, investors expect Microtech to begin paying dividends,...

Calculate the Laplacian of the following functions: (a) Ta= x2 + 2xy + 3z + 4. (b) Tb = sin x siny sin z. (c) Tc = e5x sin 4 y cos 3z. (d) v = x2 x + 3xz2y 2xzz.

9 Draw triangle ABC. Use compasses to draw the perpendicular bisector of BC. Show your construction lines on your drawing. Check the accuracy of your drawing with a protractor and a ruler. 8.4cm A B...

The cash account for American Medical Co. at April 30 indicated a balance of $334,985. The bank statement indicated a balance of $388,600 on April 30. Comparing the bank statement and the...

L. B. Foster invited Tie and Track Systems Inc. to submit price quotes on items to be used in a railroad expansion project. Tie and Track responded by e-mail on August 11, 2006, with prices for 9...

Suppose the spot exchange rate for the Canadian dollar is Can $1.19 and the six-month forward rate is Can $1.24. a. Which is worth more, a U.S. dollar or a Canadian dollar? b. Assuming absolute PPP...

Is there a generation gap in the type of music that people listen to? The following table represents the type of favorite music for a sample of 1,000 respondents classified according to their age...

Ackerley Media Group, Inc., claimed to have a three-season advertising Team Sponsorship Agreement (TSA) with Sharp Electronics Corporation to promote Sharp products at all Seattle Supersonics NBA...

What importance did the Council of Nicaea have in early hospital history?

Bonds as Equity the 100-year bonds we discussed in the chapter have something in common with junk bonds. Critics charge that, in both cases, the issuers are really selling equity in disguise. What...

Interpreting Bond Yields Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two...

Interpreting Bond Yields Suppose you buy a 7 percent coupon, 20-year bond today -when its first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond? Why?

Many fast food restaurant chains like McDonalds and others have some stores which are directly owned by the company (McDonalds) which hires a manager and staff to manage the restaurants, and some...

The following estimated regression equation is based on 30 observations. y^=17.4+3.8x12x2+7.6x3+2.8x4 The values of SST and SSR are 1,809 and 1,762 , respectively. a. Compute R2 (to 3 decimals). b....

Expected Return Standard Deviation Stock fund ( S ) 14% 34% Bond fund ( B ) 5% 28% The correlation between the fund returns is .0214. What is the expected return and standard deviation for the...