Question

You own 300 shares of stock in Halestorm, Inc., that currently sells for $84.25 per share....

You own 300 shares of stock in Halestorm, Inc., that currently sells for $84.25 per share. The company has announced a dividend of $3.65 per share with an ex-dividend date of February 4. Assuming no taxes, what is the value of the stock on February 4?

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Answer #1

Current Price of share = $84.25

Dividend of $3.65 is announced with an ex-dividend date of February 4

calculating the Value of stock on Feb 4 (ex-dividend date)

Value of Stock per share = Current Price of share - Dividend

Value of Stock per share = $84.25 - $3.65

Value of Stock per share= $80.6

Value of Stock = (Value of Stock per share)*No of shares owned

Value of Stock = ($80.6)*300

Value of Stock = $24,180

SO, the value of the stock on February 4 is $24,180

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