Question

You own 200 shares of stock in Halestorm, Inc., that currently sells for $82.75 per share. The company has announced a dividend of $3.15 per share with an ex-dividend date of February 4. Assuming no taxes, what is the value of the stock on February 4?

Answer 1

Answer:

the value of the stock as on Feb 4 is $15,920

Explanation:

The computation of the value of the stock as on Feb 4 is shown below:

The New stock price is

= $82.75 per share - $3.15 per share

= $79.60 per share

Now the value of the stock would be

= Number of shares of stocked owned × new stock price

= 200 shares × $79.60 per share

= $15,920

Hence, the value of the stock as on Feb 4 is $15,920