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The market value balance sheet for Bobaflex Manufacturing is shown here. The com

ID: 2462795 • Letter: T

Question

The market value balance sheet for Bobaflex Manufacturing is shown here. The company has declared a 15 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 $83,000

Fixed assets $670,000

Total $753,000

Debt $142,000

Equity $611,000

Total $753,000

There are 18,000 shares of stock outstanding. Current stock price is $33.94.

What will the ex-divident price be? (Do not round intermediate calculations. Round your answer 2 decimal places. e.g., 31.16)

Ex-dividend price $_______________

Explanation / Answer

Details Amount No of shares      18,000.00 Market Price per share              33.95 Market Value 6,11,100.00 Revised No of share      20,700.00 Revised Market Price Per share(Ex dividend Price)              29.52