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The market value balance sheet for Sci-Fi Crimes Manufacturing is shown here. Sc

ID: 2612626 • Letter: T

Question

The market value balance sheet for Sci-Fi Crimes Manufacturing is shown here. Sci-Fi Crimes 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).

The market value balance sheet for Sci-Fi Crimes Manufacturing is shown here. Sci-Fi Crimes 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).

The market value balance sheet for Sci-Fi Crimes Manufacturing is shown here. Sci-Fi Crimes 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) arket Value Balance Sheet Cash Fixed assets 720 147.000 661,000 $ 88,000 Debt ,000 Equity Total $ 808,000 Total $ 808,000 There are 23,000 shares of stock outstanding. What is the current share price? (Round your answer to 2 decimal places. (e.g., 32.16) New stock price d What will the ex-dividend price be? (Round your answer to 2 decimal places. (e.g., 32.16)) per share Ex-dividend price

Explanation / Answer

Calculation of Current Share Price :

Current Share Price = Market Value of Equity / Current Number of shares

= $661000/23000 Shares = $28.74 Per Share

Calculation of Ex- Dividend Price :

Ex- Dividend Price = Market Value of Equity / Number of shares After stock Dividend

=$661000/ (23000*120%) Shares

= $661000/27600 Shares

= $23.95 Per Share