The market value balance sheet for Sci-Fi Crimes Manufacturing is shown here. Sc

Question

The market value balance sheet for Sci-Fi Crimes Manufacturing is shown here. Sci-Fi Crimes has declared a 10 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 31,000 shares of stock outstanding. What is the current share price? (Round your answer to 2 decimal places. (e.g., 32.16))

What will the ex-dividend price be? (Round your answer to 2 decimal places. (e.g., 32.16))

The market value balance sheet for Sci-Fi Crimes Manufacturing is shown here. Sci-Fi Crimes has declared a 10 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend).

Explanation / Answer

A. The Current Share Price is: 741,000 / 31,000 = $23.90 Per Share

B. Ex Dividend Price is: 741,000 / 34,100 = $21.73 Per Share

Wroking: Outstanding Shares = 31,000

Stock Dividend Declared 10% = 3,100

Total Share after Dividend: 34,100

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