Question

A price-weighted index consists of stocks A, B, and C which are priced at $38, $24,...

A price-weighted index consists of stocks A, B, and C which are priced at $38, $24, and $26 a share, respectively. The current index divisor is 2.7. What will the new index divisor be if stock B undergoes a 3-for-1 stock split? (Round your final answer to four decimal points.)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
5. A price-weighted index has 3 stocks: A, B and C. Their price at the start...
5. A price-weighted index has 3 stocks: A, B and C. Their price at the start of the index was $35, $48 and $90. What is the initial divisor if the index start with a value of 100? By the end of the first year, the price of the 3 stocks is $40, $52 and $83 respectively. How much has the index gone up? If stock C has a 3-for-1 split, what would be the new index value after one...
The price-weighted Dow Jones Industrial Average Index closed at 12,500 today and the divisor was 0.14....
The price-weighted Dow Jones Industrial Average Index closed at 12,500 today and the divisor was 0.14. One of the 30 constituent stocks had a 5-for-1 stock split right declining from $100 to $20 per share right after the market close (immediately after the index value and divisor above were observed). What would the new divisor have to be to keep the index value unchanged at 12,500?     Group of answer choices 1) 0.1320 2) 0.1424 3) 0.1416 4) 0.1336
The Hydro Index is a price weighted stock index based on the 4 largest boat manufacturers...
The Hydro Index is a price weighted stock index based on the 4 largest boat manufacturers in the nation. Consider the four stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. (Please pay close attention to stock split) P0 Q0 P1 Q1 P2 Q2 A 80 200 90 200 98 200 B 50 300 40 300 50 300 C 90 200 110 200 115 200 D 100 100 90 100...
Suppose that a stock index is constructed with three stocks priced at $7, $43, and $56....
Suppose that a stock index is constructed with three stocks priced at $7, $43, and $56. The number of outstanding shares for each is 500,000 shares, 405,000 shares, and 553,000 shares, respectively. Today the prices for each stock are changed to $14, $44, and $52 and the number of outstanding shares for each are changed to 250,000 shares, 405,000 shares and 553,000 shares today, what is the price weighted index value today if the index yesterday was 10,500?
Use the following table to answer the next two questions. Stock 1/2/19 Price 1/2/20 Price X...
Use the following table to answer the next two questions. Stock 1/2/19 Price 1/2/20 Price X 50 48 Y* 70 55 Z** 114 69 *4:3 Split after close of 1/2/19 **8:5 Split after close of 1/2/19 Find the percentage change in a price weighted index consisting of these three stocks from 2019-2020. Round intermediate steps and your final answer to four decimals. Find the percentage change of an equally weighted index consisting of these stocks. Round intermediate steps and your...
Number of shares Closing Prices Company outstanding Year T Year T + 1 W 1,500 $22.00...
Number of shares Closing Prices Company outstanding Year T Year T + 1 W 1,500 $22.00 $18.00 X 2,500 35.00 25.00 Y 2,000 10.00 15.00 Z 3,000 50.00 48.00 Find the percentage change of a value-weighted index consisting of these four stocks from years T to T+1. Round your final answer to four decimals and enter your answer in decimal format (EX: .XXXX) Which of the following is a flaw of price-weighted indices? They cannot be adjusted for stock splits...
Given $100,000 to​ invest, construct a​ value-weighted portfolio of the four stocks listed below. Stock ​Price/Share...
Given $100,000 to​ invest, construct a​ value-weighted portfolio of the four stocks listed below. Stock ​Price/Share ​($) Number of Shares Outstanding​ (millions) Golden Seas 14 1.13 Jacobs and Jacobs 24 1.28 MAG 45 30.01 PDJB 6 13.55 Enter the portfolio weight​ below:  ​(Round to two decimal​ places.) Stock ​% of Total Value ​(portfolio weight) Golden Seas nothing​% Enter the portfolio weight​ below:  ​(Round to two decimal​ places.) Stock ​% of Total Value ​(portfolio weight) Jacobs and Jacobs nothing​% Enter the...
Suppose that the index model for stocks A and B is estimated from excess returns with...
Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 4.5% + 1.40RM + eA RB = –2.2% + 1.70RM + eB σM = 24%; R-squareA = 0.30; R-squareB = 0.20 Assume you create a portfolio Q, with investment proportions of 0.50 in a risky portfolio P, 0.30 in the market index, and 0.20 in T-bill. Portfolio P is composed of 60% Stock A and 40% Stock B. a....
Assume that there are two stocks in the world (STOCK A and STOCK B) as presented...
Assume that there are two stocks in the world (STOCK A and STOCK B) as presented below: STOCK                                                                                                                                   P0                    Q0                    P1                   Q1                    A                                                                                                                    35                    200                  29.75               200 B                                                                                                                                            30                    100                  27                    100      P0 represents the price per share at time period 0 (today). Q0 represents the number of shares outstanding at time period 0 (today). P1 represents the price per share at time period 1 (one year from today). Q1 represents the number of shares outstanding at time period 1 (one year from today). Assume that you have a total of $65...
There are two stocks in the market, stock A and stock B. The price of stock...
There are two stocks in the market, stock A and stock B. The price of stock A today is $80. The price of stock A next year will be $68 if the economy is in a recession, $88 if the economy is normal, and $100 if the economy is expanding. The probabilities of recession, normal times, and expansion are 0.2, 0.6, and 0.2, respectively. Stock A pays no dividends and has a beta of 0.83. Stock B has an expected...