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Cash Dividends. The stock of ABC Corporation 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.
a. What price is ABC stock selling for today?
b. What price will it sell for tomorrow? Ignore taxes.
Assets Liabilities and EquityCash $100,000 Equity $1,000,000Fixed assets 900,000
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