The balance sheet for Ferguson Corp. is shown here in market value terms. There

Question

The balance sheet for Ferguson Corp. is shown here in market value terms. There are 9,000 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.)

The balance sheet for Ferguson Corp. is shown here in market value terms. There are 9,000 shares of stock outstanding.

Explanation / Answer

1) price of stock = equity/shares outstanding = 444600/9000 = 49.4

2) Price on ex dividend date = price of stock -dividend = 49.4-1.5 = 47.9

b/s

Cash = old cash - dividend*share o/s

=44600-1.5*9000 = 31100

Fixed asset = 400000

Total = 31100+400000 = 431100

Equity = 444600-1.5*9000 = 431000

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