The balance sheet for Tempest, Inc., is shown here in market value terms. There are...
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Accounting
The balance sheet for Tempest, Inc., is shown here in market value terms. There are 30,000 shares of stock outstanding.
Market Value Balance Sheet
Cash
$
136,000
Fixed assets
534,800
Equity
$
670,800
Total
$
670,800
Total
$
670,800
The company has declared a dividend of $1.20 per share. The stock goes ex dividend tomorrow. Ignore any tax effects.
a.
What is the stock selling for today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.
What will it sell for tomorrow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c.
What will the balance sheet look like after the dividends are paid? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
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