Value of your stock holdings will do on ex-dividend date

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A company has the following balance sheet: Assets: 45,000,000 Liabilities: 15,000,000

The equity section is simple: Retained earnings and 5,000,000 shares of common stock.

The current market price is 80% of book value. You own 50,000 shares of the stock.

The board declared a dividend of $0.40 a share two months ago to shareholders of record one month ago.

What do you expect the value of your stock holdings will do on the ex-dividend date?

Reference no: EM131359450

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