The market value balance sheet for Sci-Fi Crimes Manufacturing is shown here. Sc
ID: 2640319 • Letter: T
Question
The market value balance sheet for Sci-Fi Crimes Manufacturing is shown here. Sci-Fi Crimes has declared a 30 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 30.000 shares of stock outstanding. What is the current share price? (Round your answer to 2 decimal places. (e.g., 32.16)) New stock price $ per share What will the ex-dividend price be? (Round your answer to 2 decimal places. (e.g., 32.16)) 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
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