he balance sheet for Ferguson Corp. is shown here in market value terms. There a
ID: 2733529 • Letter: H
Question
he balance sheet for Ferguson 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 it sell for tomorrow? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
he balance sheet for Ferguson Corp. is shown here in market value terms. There are 10,000 shares of stock outstanding.
Explanation / Answer
Stock seeling today=equity/no of shares
=485,000/10,000
=$48.5
Stock selling tomorrow= stock selling today-dividend paid per share
=48.5-1.9=$46.6
Total dividend paid=(1.9*10,000)=$19,000
Balance sheet:After dividend paid:
----------------------------------
Cahsh (db) 45000-19000=$26,000
Fixed asset (db) 440,000
Total(db) $466,000
Equity(cr) 485,000-19,000=$466,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.