Stock Dividends. The market value balance sheet for Ewe Manufacturing is shown here. Ewe 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). There are 15,000 shares of stock outstanding. What will the ex dividend price be?
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Market Value Balance Sheet |
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|
Cash |
$130,000 |
Debt |
$110,000 |
|
Fixed assets |
535,000 |
Equity |
555,000 |
|
Total |
$665,000 |
Total |
$665.000 |