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

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

.     The company has declared a dividend of $1.80 per share. The stock goes ex-dividend tomorrow. Ignore any tax effects. What will the price of the stock be tomorrow?    A.  $18.90 B.  $36.20 C.  $39.60 D.  $52.15 E.  $71.80 Tomorrow's stock price = ($207,000/5,000) - $1.80 = $39.60

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The balance sheet for Apple Pie Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding.     The company has announced that it is going to repurchase $4,350 worth of stock. What will the price of the stock be after this repurchase?    A.  $35.00 B.  $36.19 C.  $39.21 D.  $42.50 E.  $43.33 Current price per share = $175,000/5,000 = $35 Number of shares repurchased = $4,350/$35 = 124.29 New shares outstanding = 5,000 - 124.29 = 4,875.71 New share price = ($175,000 - $4,350)/4,875.71 = $35

96.

The market value balance sheet for Inbox Manufacturing is shown here. Inbox has declared a 15 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 13,000 shares outstanding. What is the ex-dividend stock price?        A.  $23.51 B.  $25.15 C.  $25.51 D.  $26.86 E.  $28.92 New price = $376,000/(13,000 × 1.15) = $25.15