Ask Question
BusinessBusiness
12 March, 06:01

You own 230 shares of stock in Green Mild Chili Peppers, Inc., that currently sell for $50.70 per share. The company has announced a dividend of $2.59 per share with an ex-dividend date of May 3. Assuming no taxes, what is the value of your portfolio on May 3

+1
Answers (2)
  1. 12 March, 06:12
    0
    The value of the portfolio ex-dividend is $ 11,065.30

    Explanation:

    On May 3, when the stock would have gone ex-dividend, it is expected that the share price would be marked down by the value of dividend paid, hence the portfolio should now be valued at ex-dividend price

    The ex-dividend price = share price before dividend-dividend

    share price before dividend is $50.70

    ex-dividend is $2.59

    ex-dividend price=$50.70-$2.59

    =$48.11

    Value of portfolio=number of shares*ex-dividend price

    number of shares is 230

    value of portfolio=230*$48.11

    =$ 11,065.30
  2. 12 March, 06:21
    0
    This equals $12,256.70 (230 x $50.70 + 230 x $2.59)

    Explanation:

    The value of the portfolio on May 3 is the sum of the market value of the shares plus the sum of the returns in form of dividends to be received.

    This value adds the weight of the investment obtained by multiplying the total shares held with its market price to the expected dividend returns on the given date.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You own 230 shares of stock in Green Mild Chili Peppers, Inc., that currently sell for $50.70 per share. The company has announced a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Pharoah Corporation had the following activities in 2020. 1. Payment of accounts payable $843,000 4. Collection of note receivable $104,000 2. Issuance of common stock $256,000 5. Issuance of bonds payable $466,000 3. Payment of dividends $333,000 6.
Answers (1)
Early Head Start is an example of A. private preschool. B. biological effect. C. a nurturing environment. D. private curriculum.
Answers (1)
Stone Co. begins operations in 20X9 and reports $225,000 in income before income tax for the year. Stone's 20X9 tax depreciation exceeds its book depreciation by $25,000.
Answers (1)
Income statement format; single step and multiple step [LO4-1, 4-3, 4-5] The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account Title Debits Credits Sales revenue 3,350,000 Interest revenue 100,000
Answers (1)
The phenomenon in which an insured individual takes less care in preventing the event against which she is insured is an example of double coincidence of wants. moral hazard. adverse selection. foolish behavior.
Answers (1)
New Questions in Business
During a certain four-year period, the consumer price index (CPI) increased by 30%, but during the next four-year period, it increased by only 10%. Which of these conditions must have existed during the second four-year period? A. Deflation B.
Answers (2)
Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per unit is 2 ounces (oz.).
Answers (1)
Name and describe the four basic types of fees and cost a franchise owner must pay
Answers (1)
What is the difference between capital gain and capital loss?
Answers (1)
g The Council of Economic Advisors to the President of a country reported gross investment expenditure at $400,000 during a particular year.
Answers (1)
Home » Business » You own 230 shares of stock in Green Mild Chili Peppers, Inc., that currently sell for $50.70 per share. The company has announced a dividend of $2.59 per share with an ex-dividend date of May 3.
Sign Up Forgot Password?