The balance sheet for Levy Corp. is shown here in market value terms. There are

Question

The balance sheet for Levy Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding.

Ignoring any tax effects, what is the stock selling for today? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Ignoring any tax effects, what will the stock sell for tomorrow? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

The balance sheet for Levy Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding.

Explanation / Answer

Ans: Stock Selling price as on today= equity/ no of share outstanding $404200/10000 $40.42 Ans: Stock selling price for tomarrow= (Equity-dividend value)/ no of share outstanding ($404200-10000*$1.9)/10000 404200-19000/10000 385200/10000 $38.52

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