The balance sheet for Contrail Air, Inc. is presented below, in market value terms. The company has 12,000 shares outstanding and declares a dividend...

The balance sheet for Contrail Air, Inc. is presented below, in market value terms. The company has 12,000 shares outstanding and declares a dividend of $1.20 per share.

Ignoring any tax effects, what will the stock sell for ex-dividend?

• Shares outstanding 12,000
• Dividend per share $1.20

               Market Value Balance Sheet

Cash                 $55,000         Equity    $465,000  

Fixed assets     $410,000          

Total                 $465,000       Total       $465,000