The market value balance sheet for Inbox Manufacturing is shown here.Inbox has declared a 15 percent stock dividend.The stock goes ex-dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend).There are 13,000 shares outstanding.What is the ex-dividend stock price?
A)$23.51
B)$25.15
C)$25.51
D)$26.86
E)$28.92

Question

The market value balance sheet for Inbox Manufacturing is shown here.Inbox has declared a 15 percent stock dividend.The stock goes ex-dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend).There are 13,000 shares outstanding.What is the ex-dividend stock price? 
A)$23.51 
B)$25.15 
C)$25.51 
D)$26.86 
E)$28.92

Quizplus · Accepted Answer

New price = $376,000/(13,000 × 1.15) = $25.15

The Market Value Balance Sheet for Inbox Manufacturing Is Shown