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What price is Payout stock selling for today

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Reference no: EM133047488

Problem - The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $4 per share, and there are 50,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below.

Assets

Liabilities and Equity

Cash

$50,000

Equity

$850,000

Fixed assets

800,000

 

 

Required -

a. What price is Payout stock selling for today?

b. What price will it sell for tomorrow? Ignore taxes.

Reference no: EM133047488

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