Cash Dividends. The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.50 per share, and there are 20,000 shares of stock outstanding. The market-value balance sheet for Payout is shown on the following table.
Assets Liabilities and Equity
Cash $100,000 Equity $1,000,000
Fixed Assets $900,000
a. What price is Payout stock selling for today?
b. What price will it sell for tomorrow? Ignore taxes.