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

Question

The balance sheet for Levy Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding.

Ignoring any tax effects, what is the stock selling for today? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Ignoring any tax effects, what will it sell for tomorrow? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

The balance sheet for Levy Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding.

Explanation / Answer

Market Value Balance Sheet   Cash $ 43,900   Equity $ 373900   Fixed assets 330,000      Total $ 373,900      Total $ 373,900 Number of shares 5000 value of equity before payment of dividend 74.78 value of dividend 1.6 value of equity after payment of dividend 73.18 Market Value Balance Sheet   Cash 43900- 5000*1.6 35900   Equity 5000*73.18 365900   Fixed assets 330000      Total $ 365900      Total $ 365,900

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