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Computing the ex-dividend price

Bonus Issue.

Response to the following problem:

The market value balance sheet for Ewe Wool is shown here. Ewe Wool has declared a 20% bonus issue. The share goes ex dividend tomorrow (the chronology for a bonus issue is similar to that for a cash dividend). There are 15 000 shares outstanding. What will the ex-dividend price be?

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Financial Accounting: Computing the ex-dividend price

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Financial Accounting: Computing the ex-dividend price

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