What will the new account balances be

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Reference no: EM131901307

Rachel Co. has the following account balances:

Cash $25,000 Liabilities $60,000

Fixed Assets 100,000 Equity 65,000

_____________________ _______________________________

Total Assets $125,000 Total Liabilities and Equity $125,000

There are 5,000 shares of Common Stock outstanding.

a) If the firm issues a $1.50 dividend, what will the ex-dividend price be?

b) What will the new account balances be? (Present the balance sheet after the dividend is paid).

Reference no: EM131901307

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