Stock dividends: The market value balance sheet for Outland Manufacturing is shown in the table below. Outland has declared a 20 percent stock dividend. The stock goes ex-dividend tomorrow. (Chronology for a stock dividend is similar to that for a cash dividend.) There are 45,000 shares of stock outstanding. Calculate the ex-dividend price.
Problem 4. Stock Dividends: Market Value Balance Sheet
Cash: $165,000 Debt: $177,000
Fixed Assets: $658,000 Equity: $646,000
Total: $823,000 Total: $823,000