Problem 14.07 – Quinn Corp. or Tempest, Inc.
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
Quin Corp. or Tempest, Inc. has a balance sheet with certain market values for cash, fixed assets, and equity. The company has a certain number of shares of stock outstanding and has declared a dividend of a certain amount per share. The stock will go ex-dividend tomorrow, and any tax effects are ignored. Calculate the stock price today and tomorrow, and determine the balance sheet after the dividends are paid.
NOTE: There are 2 versions of this problem! This version asks you to determine the stock price today and the stock price tomorrow. Then complete a balance sheet for the company.