The market value balance sheet for Outbox Manufacturing is shown here. Outbox has a 25% stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 20,000 shares of stock outstanding. What will the ex-dividend be?
Market Value Balance Sheet
Cash $230,000 Debt $190,000
Fixed Assets 415,000 Equity 455,000
Total $645,000 Total $645,000