Question

Problem 19-7 Stock Dividends The market value balance sheet for Outbox Manufacturing is shown here. Outbox has declared a stock dividend of 20 percent. 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 $ 98,000 Debt $ 157,000 Fixed assets 820,000 Equity 761,000 Total $ 918,000 Total $ 918,000 There are 33,000 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.) Current share price $ What will the ex-dividend price be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Ex-dividend price per share $

Answer 1