Question

The market value balance sheet for Bobaflex Manufacturing is shown here. The company has declared a 10 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). Market Value Balance Sheet Cash $ 86,000 Debt $ 145,000 Fixed assets 700,000 Equity 641,000 Total $ 786,000 Total $ 786,000 a. There are 21,000 shares of stock outstanding. What is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the ex-dividend price be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.).

Answer 1